Hungary can take over the projects in the Republika Srpska, one of the two federal entities that make up Bosnia and Herzegovina, after funding was cut by Germany because of the national policy of the federal state.
The investments were announced by President Milorad Dodik himself after talks with Hungarian Prime Minister Viktor Orbán in Budapest on Monday.
“Mr. Orbán has expressed his willingness to replace the projects that the Germans have canceled,” said the politician, who said Berlin was punishing Bosnian Serbs for insisting on their autonomy.
The German embassy in Bosnia and Herzegovina announced in early August the German government’s decision to suspend four infrastructure projects in the state worth a total of €105 million.
These include the construction of the “Hrgud” wind power plant in Berkovići. The project is worth around €64.28 million, of which the German Development Bank has provided €60 million and Elektroprivreda RS will finance the rest.
Germany is also withdrawing from the reconstruction of a hydroelectric power plant near Trebinje in the south of the country and from the Gradiška sewage disposal project in the north of Bosnia and Herzegovina.
The Republic of Bosnia and Herzegovina last borrowed from the Hungarian EXIM Bank in September. This is their second loan request. The implementation of the €100 million Hungarian aid program promised by Viktor Orbán in Laktaši, near Banja Luka, in November 2021 is also underway, they added.