PIU Directorate

PIU (Project Implementation Unit) is established as Directorate belonging to the MH ERS Parent Joint-stock company- Trebinje and it is responsible for the preparation and implementation of projects financed by the international financial institutions. It was established in 1996, when certain international financial institutions decided to participate in the restoration of electric power sector in the Republic of Srpska. Prerequisite for the successful implementation of projects required organizing of a Project Implementation Unit within Elektroprivreda Republike Srpske, with a proper organizational structure and personnel trained to perform this function in all subsidiaries of MH ERS, and in compliance with procedures of the international lending institution.

So far, PIU Directorate has realized four major loan arrangements under the following names: Power 1, Power 2, Power 3 and Power 4, secured by several financial institutions: World Bank (WB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Kreditanstalt für Wiederaufbau (KfW) and Japan Bank for International Cooperation (JBIC). Stated four loan arrangements provided ca. 320 million BAM and these funds were used for the rehabilitation of installations and equipment in hydro power plants, thermal power plans, transmission network and electric distribution utilities.

The operations of PIU Directorate are managed by Director of the Directorate who is directly responsible to the Management of MH ERS Parent joint-stock company. The work of PIU Directorate is performed through the following departments:

  • Departments for Procurement
  • Departments for operational monitoring of loan

PIU Directorate is responsible for preparation and implementation of projects and for that purpose conducts the following activities:

  • Preparation and assessment of projects candidate for implementation
  • Participation in negotiations with creditors regarding modalities and conditions for granting loans
  • Conducting operational activities for the preparation, approval and signing of loan arrangements by competent bodies in BIH and the Republic of Srpska
  • Development of project implementation plans (PIP)
  • Preparation of tender documentation, conduction of public procurement procedures and all necessary actions until the conclusion of contracts
  • Managing correspondence with representatives of the parties involved: creditors, consultants, bidders
  • Operational monitoring of execution of contracts concluded
  • Financial monitoring of execution of contracts in terms of maturity and settlement of financial liabilities under the contracts
  • Allocation of loans to end users/ subsidiaries of MH ERS
  • Monitoring of loan repayment liabilities and reallocation of those liabilities to subsidiaries of MH ERS
  • Preparation of reports for the Management of MH ERS Parent joint-stock company, line Ministry, Ministry of Finance of the Republic of Srpska, Ministry of Finance and Treasury BIH and for the international financial lending institutions/banks

In addition to the employees of PIU Directorate, appointed representatives from subsidiaries (Project managers) in which certain projects are implemented, are actively involved in the implementation of all projects.

Delivery of equipment and software, within the realization of SCADA systems in power utility companies, including preparatory activities on the realization of Hrgud wind farm project, is currently underway. Hrgud wind farm project provides for the construction of the wind park with installed capacity of ca. 48 MW at the location of Hrgud, for the construction of which: the Feasibility Study was developed, Concession Agreement was signed with the Government of the Republic of Srpska, Agreement on Loan and Project was signed with KfW bank, selection of consultant for development of Environmental and Social Impact Study was done and which is currently under negotiations, and in accordance with the provisions of Loan and Project Agreement with participation of a so called tender agent engaged by KfW bank the project task is being developed for implementation consultant who will provide Basic design for Hrgud wind park and preparation of tender documentation for the selection of contractors for construction of concerned generation plant.