The new 20 megawatt plant will be built on the basis of an agreement on a 30-year water use concession signed by the energy minister of Bosnia's Federation entity, Erdal Trhulj, and Elektroprivreda managing director Elvedin Grabovica.
Construction is expected to be completed in the next four years and the investment has been estimated at 126 million convertible marks (about 63 million euros).
The plant, to be called Vranduk, will produce green energy.