China’s Norinco wants to take over a 125 MW photovoltaic project in BiH

The Chinese company Norinco International plans to buy 80% of shares in Aurora Solar, a company from Bosnia and Herzegovina that received a concession to build a 125 MW solar power plant near Stolac in the Herzegovina-Neretva canton, reports Capital.ba. Tihomir Nikolić, co-owner and general director of Aurora Solar, claims that negotiations with the Chinese company, as well as with other potential investors, are ongoing and that nothing has been decided yet.

Nikolić claims that he wants to retain the majority stake in the project and instead of 80%, he would propose that Norinco take over up to 50%. He does not rule out that his family company will implement the investment on its own.

The owners of the project would like to retain the majority stake

Norinco intends to acquire Aurora Solar through its Hungarian subsidiary for €13 million (BAM 25.5 million), with the investment in the future solar plant estimated at around €110 million (BAM 214.2 million), Capital wrote.

According to the concession agreement, the solar power plant is to be built on the Komanje hill near Stolac, where the company has purchased over 146 hectares of land. Last September, the government of the Federation of Bosnia and Herzegovina (FBiH) issued an energy permit for the plant, and in December, the government of the Herzegovina-Neretva canton granted a concession for 30 years.

FBiH is one of the two entities that make up Bosnia and Herzegovina. It consists of ten cantons. The second one is called Republika Srpska.

Norinco has built the largest wind farm in Croatia with a capacity of 156 MW. The facility in Senj opened in 2021. The investment value amounted to EUR 200 million. However, the wind farm has not yet received an operating permit due to problems related to excessive noise produced by 39 wind turbines, the news service reminds.

Norinco has built the largest wind farm in Croatia, but has not yet received an operating permit

Norinco is part of China North Industries Corporation (CNGC), one of the largest Chinese companies operating in 40 countries around the world. However, the article notes that it has received very bad press due to problems with infrastructure projects in Africa, such as air pollution, impacts on health, local communities and ecosystems, as well as poor worker safety.

In recent years, China has engaged in a number of credit and construction projects in Bosnia and Herzegovina, including thermal power plants, hydroelectric power plants and renewable energy plants, media recalled. Projects include the Ivovik wind farm and the Dabar hydroelectric power plant.

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