MVM Ovit Zrt, a unit of Hungary’s state-owned power company Magyar Villamos Muvek Zrt., plans to build a heating plant in northwestern Bosnia-Herzegovina, local authorities said.

The biomass-fueled plant in Bosanska Krupa, whose construction may begin in 2014, would cost about 10 million euros ($13 million) and provide heat for the whole municipality of more than 50,000 people, the local government said on its website, following a visit by MVM officials.

To contact the reporter on this story: Misha Savic in Belgrade at msavic2@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net