From mid-2020, Zenica residents will have secure heating

ZENICA, (Patria) - General Director of Toplana Zenica company Nikhil Mehta and EBRD Regional Director for the Western Balkans Zsuzsanna Hargitai signed today at the headquarters of ArcelorMittal Zenica a loan agreement to support the implementation of the Zenica Heating Plant construction project. The Zenica Heating Plant represents a public-private partnership project of the City of Zenica, ArcelorMittal Zenica, KPA Unicon, and FinnFund from Finland.

The ownership share ratio is 50% in favor of ArcelorMittal, 20% in favor of the City of Zenica, and 15% each for Finnish partners KPA Unicon and FinnFund. The total value of the new heating plant construction project is around 53 million euros, and loan funds in the amount of 46 million euros have been secured from the EBRD and guaranteed by the ArcelorMittal Group.

In October 2018, the City of Zenica paid its share of the founding capital in the amount of 2,346,996 KM from its own budget, without additional borrowing.

"First of all, I would like to take this opportunity to thank the EBRD, Regional Director Hargitai, and Ian Brown, Director for BiH. I know that many did not believe in this project, even though it is a project of crucial importance. But, as you can see, everything is completed. Financial resources have been secured, projects are completed, boilers are being manufactured, and the citizens of Zenica will have what they deserve, which is quality and secure heating," stated Fuad Kasumović, Mayor of Zenica.

In addition to reliable heating, which will solve a problem that has plagued Zenica residents for over two decades, this project has been certified as one of the best from an energy and environmental protection perspective, which all participants in the ceremony proudly emphasized today. Mayor Kasumović reminded that the gasification of a part of the city will soon begin, which is a prerequisite for an even better quality of life for Zenica residents, i.e., reducing air pollution.

The new boilers are expected to start operating in mid-2020.