Cooperation between USAID Bosnia and Herzegovina and Elektroprivreda HZHB (EPHZHB) – A milestone for future investments


Mostar, January 18, 2017 – USAID BiH Mission Director Peter Duffy and General Manager of EPHZHB Marinko Gilja signed a Memorandum of Understanding, which defines cooperation between EPHZHB and USAID Energy Investment Activity (USAID EIA) for the analysis of the permitting process for the construction of a wind power plant “Mesihovina”. The goal of cooperation between EPHZHB and USAID EIA is to identify legislative, regulatory and administrative obstacles that investors face in the permitting process. 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 investment in the BiH energy sector. The estimated value of “Mesihovina” wind power plant project is around 155 million KM.  

“To create a competitive, market oriented economy that provides better economic opportunities for everybody in BiH it is very important to attract more investors, create new jobs and ensure the economic stability of BiH.  It’s a well-known fact that Bosnia and Herzegovina has significant potential for electricity production from renewable energy sources. However, slow procedures in permitting and legislative gaps get in the way of the country being able to benefit from this potential. We know that EP HZHB has extensive knowledge and experience in permitting procedures for the construction of all types of renewable power plants and are hoping to use this knowledge in a joint effort to improve the overall permitting process.” – stated Peter Duffy, USAID BiH Mission Director  

It is well known that 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 more than $1.6 billion in assistance to support economic, democratic and social progress in BiH.