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NGP, Bosnian Serbs May Build Hydro Plants Worth $1.65 Billion

New Generation Power, a U.S. energy developer, signed an agreement today with the Bosnian Serb government on building four hydro plants on the Drina river in central Balkans.

The plants of 365 megawatts combined capacity may cost 1.3 billion euros ($1.65 billion) to build, according to a statement on the website of Republika Srpska, the Serb part of Bosnia Herzegovina. Pending a feasibility study, the government-owned power producer Elektroprivreda Republike Srpske may form a venture with New Generation Power to develop the plants as a concession, it said.

The river Drina forms the border between Bosnia and Serbia. NGP, which focuses on renewable energy projects, held talks earlier this year with Serbia’s state utility, Elektroprivreda Srbije, on possible construction of these and other plants in the Balkan country.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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