News in English     | 17.03.2019. 14:51 |

Construction of Block 7 unquestionable for government in BiH

FENA Hana Imamović

SARAJEVO, March 17 (FENA) – House of Representatives of the Federation of BiH approved the Federation of BiH to be guarantor to the public company Elektroprivreda BiH for loan from the import-export bank of China for project of building of Block 7 450 MW of the Thermal Power Plant Tuzla, but high officials of the European Union reacted to this decision.

 

By: Hana Imamović

Commissioner for Neighborhood Policy and Enlargement Negotiations of the EU Johannes Hahn was surprised with this decision of the FBiH Parliament, which was supported by more than 70 deputies and it is an investment worth approximately 1.5 billion KM, with repayment period of 20 years and grade period of five years.  

“This raises a serious question on commitment of BiH to international agreements and European rules within the Energy Community Agreement but also about selection of energy technology and analysis of ratio of price and benefit in a responsible and transparent way,” wrote Hahn.

He emphasized he is sure that deputies had good reason to make this decision and that they will be able to explain it to the citizens.

“Issues such as assessment of environmental impact, state aid and public procurement procedures will definitely be closely observed during the process,” said Hahn, referring to opinion of the European Commission on BiH’s request for membership in the EU.

This decision, confirmed Head of the EU Delegation to BiH Lars-Gunnar Wigemark this week, will probably be discussed at the meeting between Hahn and BiH officials at the end of March.

Reminding that this is one of the biggest investment projects in history of the country, Wigemark explained that Hahn is concerned if financial procedures will be done in the right way, which refers to the issue of state aid and public procurement.

However, president of the Party of Democratic Action (SDA) and Chairman of the House of Peoples of the Parliamentary Assembly of BiH Bakir Izetbegović emphasized that Hahn is concerned if technologies in building of Block 7 are outdated, but Izetbegović asked for the right information to be delivered to him about this issue.

“This is technology that will be imported from the USA and I think Hahn was misinformed,” added Izetbegović.

Executive Director of Elektroprivreda BiH for capital investments Senad Salkić informed the deputies about everything that was done while preparing this project, selection of the Chinese project partner, obtaining documentation and permits and series of other details on planned construction of Block 7.

In order for construction of Block 7 to begin, House of Peoples of FBiH Parliament needs to accept two agreements – Loan Agreement (Cexim and Elektroprivreda BiH) and FBiH Guarantee Agreement (Cexim and FBiH).

(FENA) A. B.

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