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Reading: Government of FBiH Briefed on U.S. Company’s Letter of Intent for South Interconnection Gas Pipeline
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Sarajevo Times > Blog > POLITICS > Government of FBiH Briefed on U.S. Company’s Letter of Intent for South Interconnection Gas Pipeline
POLITICS

Government of FBiH Briefed on U.S. Company’s Letter of Intent for South Interconnection Gas Pipeline

Published January 21, 2026
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The Government of the Federation of Bosnia and Herzegovina today, at a telephone session, at the proposal of the Federal Ministry of Energy, Mining and Industry, accepted the Information on the received Letter of Intent from the company AAFS Infrastructure and Energy LLC, with the aim of establishing a structured, transparent and institutional dialogue with the Government of the Federation of Bosnia and Herzegovina, in connection with the development, financing and realization of an integrated package of strategic infrastructure of national importance, in accordance with the current legislation of the Federation of Bosnia and Herzegovina and Bosnia and Herzegovina.

With the adopted conclusion, the Government of the Federation of Bosnia and Herzegovina supported the continuation of the institutional dialogue and consideration of the possibility of cooperation on the development of projects from the Letter of Intent, including the construction of a new gas interconnection – “Southern interconnection of Bosnia and Herzegovina and the Republic of Croatia”, and the construction of gas power plants with accompanying gas pipelines, including the extension of the Kladanj-Tuzla gas pipeline and the modernization of international airports.

The Government of the Federation of Bosnia and Herzegovina stated that the implementation of the “Southern Interconnection Bosnia and Herzegovina and the Republic of Croatia” gas pipeline project can be considered within the framework of the Law on Concessions of the Federation of Bosnia and Herzegovina, including the possibility of submitting a self-initiated offer. For other infrastructure projects from the Letter of Intent, other implementation models can be considered, which will depend on further analysis and valid legal and regulatory frameworks.

In the case of submitting a self-initiated offer by this company, the Government of the Federation of Bosnia and Herzegovina will, in accordance with the FBiH Concessions Law, consider the possibility of granting a concession for the realization of the gas pipeline project “Southern Interconnection of Bosnia and Herzegovina and the Republic of Croatia”.

The Government of the Federation of Bosnia and Herzegovina stated that all processes for different infrastructure projects must be conducted separately and transparently.

Also, the Federal Ministry of Energy, Mining and Industry is tasked with initiating activities on the preparation of amendments to the Law on Southern Interconnection, with the aim of enabling the realization of the project through other models, including the award of a concession, as well as to regularly inform the Government of the Federation of BiH about the activities undertaken within its jurisdiction, the FBiH Government Office for Public Relations announced.

 

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