Bosnia and Germany signed on Tuesday
an agreement on financial assistance that will open the way for German bank KfW
to lend 48 million euro ($52.4 million) for renewable energy projects in Bosnia,
the German embassy in Sarajevo said.
"Germany wants to support Bosnia in
exploiting its enormous energy potential, which would give an important impetus
to the economy and would contribute to energy security," the embassy said in a
statement after finance minister Vjekoslav Bevanda and German ambassador
Christian Hellbach signed the intergovernmental agreement.
The agreement
will facilitate the withdrawal of a 47.5 million euro loan at favourable terms
for programmes encouraging the development of hydropower plants and wind farms,
while a grant of 500,000 euro will support Bosnia's water supply and sewerage
project, Bevanda said after the signing ceremony, as quoted by the ministry's
press department.
A total of 750 million euro has been made available
to Bosnia through financial support projects offered by the German
government.
Bosnia and Herzegovina is comprised of the Serb Republic and
the Muslim-Croat Federation.