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Bosnia and Herzegovina: Schoenherr advises hydropower company HE Dabar on landmark EUR 190m financing transaction for the region's largest HPP development

14 January 2022

Schoenherr advised HE Dabar as the borrower in connection with a EUR 190m loan facility granted by the Export-Import Bank of China (CEXIM) for the development of the 160-megawatt (MW) Dabar hydropower plant, the largest hydropower plant in the region.

Located on the Trebišnjica River in the Republic of Srpska (Bosnia and Herzegovina), the Dabar plant is expected to produce about 250 gigawatt-hours (GWh) of electricity per year and is the most significant hydropower plant within the planned Gornji Horizonti hydropower complex. The project company "Dabar" is a subsidiary of the incumbent power utility of the Republic of Srpska — Elektroprivreda Republike Srpske (ERS).

Schoenherr acted as lead counsel on the sponsor's side in all stages of the project lifecycle, from the complex public procurement process, concession and EPC contract negotiations, to the structuring of all aspects of the project's financing model. Schoenherr supported ERS and the Government of the Republic of Srpska in negotiating the sovereign guarantee for the project. The signing of the finance documents marks a key milestone in reaching the financial close of this landmark renewable project. 

The Schoenherr team was multi-practice and cross-jurisdictional, led by partner Matija Vojnović and attorney at law Jelena Arsić. The team was supported by Bojan Rajić (attorney-at-law), Ivana Panić (partner), Minela Šehović (attorney-at-law), Zoran Šoljaga (attorney-at-law), Srđana Petronijević (partner) and members of the firm's regulatory, corporate, litigation, competition and state-aid teams.

CEXIM bank was advised by Milbank LLP.