Cooperation between USAID Bosnia and Herzegovina and Elektroprenos BiH – A milestone for future investments

10.11.2016

Banja Luka, November 10, 2016 – USAID BiH Mission Director Peter Duffy and General Manager of Elektroprenos BiH Mato Zaric signed today a Memorandum of Understanding, which defines cooperation between Elektroprenos BiH and USAID Energy Investment Activity (USAID EIA) for the analysis of the permitting process for the construction of different energy sector investment projects in BiH.

“The development of transmission network as a part of Balkan interconnection network is important for the whole region both from the standpoint of security of supply and for further development of electricity market. Given that the Projects of Energy Community Interest are of major importance for the whole region, they should be granted a first priority in issuance of licenses for construction according to the EU legislation. We are happy that Elektroprenos BiH as a socially responsible company has recognized the need to improve the legislative and regulatory framework. That is why this joint effort will hopefully help all sides to streamline the permitting process” – stated Peter Duffy, USAID BiH Mission Director

Elektroprenos BiH and USAID EIA will focus on a number of different investment projects in various regions, in which Elektroprenos BiH is planning to invest more than 28 million KM. USAID EIA will monitor the permitting process with the goal to identify the legislative, regulatory and administrative barriers that investors face when investing in BiH. On the basis of this analysis, USAID EIA will recommend measures, at all levels of government involved, to shorten and simplify the procedures in order to stimulate investments in the BiH energy sector.

For construction of any power facility in Bosnia and Herzegovina, investors must obtain a vast number of permits, consents and approvals from a large number of different institutions. This results in a procedure that lasts fairly long; and in the past, even the most determined investors gave up and left the country.

To date, the U.S. Government, primarily through USAID, has provided almost $1.7 billion in assistance to support economic, democratic and social progress in BiH.