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Wind Farm Project in Bosnia

craigshieldsPosted on Posted in Wind Energy

maxresdefault (7)Here’s an investment opportunity in a wind project that I thought you may find interesting. When deployed, it will be the first privately owned wind farm in Bosnia (two government owned projects are already operating).

 Its representative in New York City, Michael Belotz, writes as follows, summarizing this short presentation.

Craig, your website was forwarded on to me. We are in the process of raising equity for a 50 MW wind farm in Bosnia. It is shovel-ready and debt financing is in place.

The government owned utility is giving us an above-market PPA for 15 years. All permits are done. In addition we have strong interest from
international development agencies to guarantee a portion of the debt.

The total cost is 90 MM EUR and equity in the form of a LOC or bank guarantee of 27 MM EUR is required. A very conservative IRR in the
mid-20% is forecast, although we would expect it to be substantially higher.

Please let me know if this is of interest to your investors, and I can send you more detailed info. Access to our data room would be granted with the signing of a NDA.

Thanks. I look forward to hearing from you.

To my question:  Michael, a central issue here is Bosnia’s political instability.  Can you speak to that?  He writes:

As any country 20 years after a major war, Bosnia has issues.  There is ethnic tension and rumblings of the confederation splitting apart into two entities.  However, the threat of violence has long since passed and Bosnia is making strides in developing their vast resources.  The two regional governments are quite stable with the federal government being a far weaker entity.  Our wind farm is in the Bosnian Serb side of the country and all agreements are with that government.  That being said the Bosnia has applied for EU membership and is in the process of passing laws to bring them into harmony with their rules.  The application was received favorably and it is expected they will be joining the EU in a few years.  Thus, lies the opportunity.  This project would not have this type of IRR in the EU.  Once Bosnia joins there will be a revaluation of assets and we would expect this to affect the wind farm.  

However, besides all of this, the World Bank (MIGA) has verbally agreed to provide sovereign risk insurance for this project subject to DD.  So any potential investor that is nervous about Bosnia can get their investment insured in case instability does hit.

If you’d like to know more, please let me know and I’ll connect you directly with my contact.

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7 comments on “Wind Farm Project in Bosnia”
  1. Gerolf Jacobs says:
    November 29, 2018 at 10:12 pm

    Dear Craig
    This project can have my interest
    Please send me more info
    Best regards
    Gerolf

  2. marcopolo says:
    November 30, 2018 at 8:59 am

    Craig,

    You are quite right to be cautious when it comes to investing in projects in places such as Bosnia.

    This sort of investment requires intimate local knowledge and faith in the locals involved in the project. Misunderstandings, changes in policy, local politics etc can easily arise and can be very difficult to resolve.

    Investing in the economic infrastructure of developing nations, or nations with very different cultures is not for the fainthearted or inexperienced.

    Bosnia, especially Republika Srpska, already has a solid group of local venture capitalists eager for development projects and expert at raising money either in the EU, Middle East or Russia.(especially with Russians). These well established locals have the knowledge, contacts and insights to perform comprehensive due diligence.

    The Foreign Investment Promotion Agency of Bosnia and Herzegovina, is ggod place to start, while private funds and banks such as the Horizonte Bosnia and Herzegovina Enterprise Fund, Raiffeisen BANK d.d.,Hypotekarna Banka, Komercijalna Banka of Budva and Erste Bank AD all provide advice and investor facilities.

    Most of these banks will provide underwriting advice and have good local knowledge, but it would pay to get an expert Western based merchant bank to provide a recommendation to an astute local lawyer or business advisor.

    I’m sure Michael is an enterprising person of integrity and sincere in his desire to help advance renewable energy adoption in Bosnia (a laudable ambition), but the risks can’t be underestimated and Bosnia is a long way from home.

    On the other hand, Bosnian investments have great tax advantages.

  3. Abdelmajid jemai says:
    December 17, 2018 at 9:27 pm

    Hi Craig,
    Please get back to me,the wind farm project in Bosnia is approved by an investor.
    I need the project direct contact to proceed.
    Very urgent.
    Abdel Jemai
    ajemai@yahoo.can
    Tel: 0021628504224

  4. Abdelmajid Jemai says:
    December 18, 2018 at 3:41 pm

    Sorry Craig there was a mistake in the e-mail
    it should be:

    ajemai@yahoo.ca