Chinese Exim Bank Halts Financing for Dabar Hydropower Plant in Bosnia and Herzegovina
Chinese Exim Bank has suspended financing for the Dabar hydropower project in Bosnia and Herzegovina, valued over €220 million, due to repayment concerns from Republika Srpska's government. The project's contractor, Gezhouba Group, has reduced its workforce as a credit risk assessment is underway, with operations expected to resume fully by May's end.
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Chinese Exim Bank has temporarily frozen funding for the Dabar hydropower project in Bosnia and Herzegovina, which is primarily financed by an €220 million loan backed by Republika Srpska's government. Gezhouba Group has reduced its workforce on-site, currently employing 70 workers, as a credit risk assessment is being conducted.
Construction began in 2023, with a completion target set for October 2027. The project is part of a larger megaproject involving seven hydropower plants. Environmental lawsuits have been filed against the project, raising concerns about its impacts.
Delays are anticipated due to complex terrain and financial issues with local partners. The situation reflects ongoing challenges in local energy project management, particularly regarding transparency and financing structures.
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