The Government of the Federation of Bosnia and Herzegovina has approved 16.5 million KM for energy efficiency subsidies. Upon the proposal of the Federal Ministry of Spatial Planning, three expenditure programs for energy efficiency projects and building insulation for energy savings have been adopted.
Of that, more than 11.5 million KM is allocated to the Expenditure Program of the revolving fund for energy efficiency of the Federation of Bosnia and Herzegovina for public facilities at Union Bank d.d. Sarajevo, while the subsidy amount for the Building Insulation Project for energy savings is three million KM, and for the Co-Financing Program for energy efficiency projects two million KM.
More than 11.5 million KM for public facilities
The Government of FBiH has approved the Expenditure Program of the revolving fund for energy efficiency of the Federation of Bosnia and Herzegovina for public facilities at Union Bank d.d. Sarajevo. Funds in the total amount of 11,563,128.47 KM designated for borrowing under this program are planned in the FBiH Budget for 2024 in the amount of 7,000,000 KM, and accumulated funds in the amount of 4,563,128.47 KM in the account of the revolving fund for energy efficiency of the Federation of Bosnia and Herzegovina for public facilities at Union Bank d.d.
The purpose of this subsidy program is to implement energy efficiency measures through a revolving funding model, i.e., by reinvesting repayments into energy efficiency investments in public facilities. The ultimate goal of establishing the revolving fund is to ensure the sustainability of energy efficiency projects in the Federation of Bosnia and Herzegovina because the savings and payments made into this fund will be used for future energy efficiency projects. This sustainable financing mechanism aims to enable the return/revolving of invested funds and attract additional funds.
The funds of the revolving fund are credit funds, and the grace period, i.e., loan repayment, begins after the first heating season from the technical acceptance of works and commissioning of technical systems, without an annual interest rate, and with a loan processing fee of 0.5 percent.
Three million KM for building insulation
The Government has also adopted the Expenditure Program with criteria for the distribution of current transfer funds for the project of building insulation for energy savings in the amount of 3,000,000 KM.
Funds in the amount of 2,900,000 KM will be distributed after a public call, in accordance with general participation conditions and specific criteria for distribution determined by this decision, as regular funds for selected programs/projects in the maximum financing value of up to 150,000 KM per selected program/project. Subsidies will be awarded to beneficiaries in accordance with adopted programs, based on submitted applications and a public call to be announced by the Federal Ministry of Spatial Planning. The public call will be published on the official website of the Ministry, in the Official Gazette of FBiH, and at least once in a daily newspaper.
The Government of the Federation of Bosnia and Herzegovina has approved the Federal Ministry of Spatial Planning to combine part of these funds in the amount of 100,000 KM with funds from CARITAS Switzerland for the implementation of energy efficiency and renewable energy projects in school buildings in the Federation of Bosnia and Herzegovina.
Subsidies for energy efficiency projects
The Government of the Federation of Bosnia and Herzegovina has adopted the Expenditure Program “Current transfers to individuals – Co-financing joint projects with international financial and other organizations” determined in the FBiH Budget for 2024. These are funds in the amount of two million KM, and subsidies are intended for three project activities.
Approval and allocation of funds will be distributed in a manner and according to the dynamics of project implementation, in accordance with the provisions of the International Financial and Project Agreement and rules defined by the Separate Agreement by the German Development Bank – KfW and in accordance with the Law on Budget Execution of FBiH for 2024.
The “Energy Efficiency in Public Buildings” project for the Federation of Bosnia and Herzegovina relates to the promotion of energy-efficient renovation and modernization of selected public buildings in the education sector in Bosnia and Herzegovina. The main objective of the project is to improve the energy efficiency of public buildings with a focus on faculties, schools, and kindergartens in Bosnia and Herzegovina, thereby providing public services in the education sector and reducing poverty. The purpose of the project is to contribute to economic and social development in Bosnia and Herzegovina and global climate protection.
The Government of FBiH recently approved funds in the amount of 1.102.642,60 KM for the continuation of implementing energy efficiency measures in public sector facilities in the Federation of Bosnia and Herzegovina, within the project “Additional financing of energy efficiency in Bosnia and Herzegovina”.