The deadline for signing the contract for the Southern Gas Interconnection has passed, but the strategic energy project remains at the center of political, legal, and expert debate. While the Government of the Federation of Bosnia and Herzegovina insists the agreement will be finalized soon despite unresolved state property issues, legal and energy experts continue to warn of potential legal challenges and implementation delays.
The United States Embassy in Bosnia and Herzegovina told BHRT it remains committed to the successful implementation of the project, underlining its importance for strengthening the country’s energy security and diversification.
Federation Minister of Energy, Mining and Industry, Vedran Lakić, said the project is progressing and that the contract is expected to be signed shortly. He acknowledged that unresolved state property issues, along with the completion of the project’s feasibility study and several technical details, remain outstanding.
“The Federation of BiH needs this project, and the investor is willing to invest. At the same time, it has to be commercially viable without placing an additional burden on citizens or the economy,” Lakić said.
Legal experts argue that signing the contract before resolving ownership issues could expose the project to legal uncertainty. Constitutional law expert Nedim Ademović said one possible solution would involve the Council of Ministers of Bosnia and Herzegovina granting a concession that would require parliamentary approval and oversight by the state Commission for Concessions. However, he noted that the commission remains non-functional due to political disagreements.
State property expert Muharem Cero suggested that the Parliamentary Assembly could exempt the land along the pipeline route from the existing disposal ban after a proposal by the Council of Ministers, eliminating legal risks. He warned that the model adopted for the Southern Gas Interconnection could set a precedent for resolving similar property issues in Republika Srpska.
Energy analysts have also questioned the project’s long-term economic viability. Former BH-Gas director Almir Bečarević said current plans rely on several proposed gas-fired power plants to demonstrate profitability, but questioned whether the pipeline’s capacity could support all planned facilities. He estimated that, even if construction begins, completion is unlikely before 2031.
Professor Hazim Bašić of the Faculty of Mechanical Engineering at the University of Sarajevo cautioned that control over gas flows could become a political tool, warning that Bosnia and Herzegovina risks replacing one form of energy dependence with another if ownership and governance issues are not carefully addressed.
The project recently gained additional international momentum following the signing of an agreement between Bosnia and Herzegovina and Croatia in Dubrovnik aimed at strengthening cross-border energy connectivity. Nevertheless, unresolved questions surrounding state property, legal procedures, and implementation timelines continue to cast uncertainty over when the Southern Gas Interconnection will move from political agreement to construction, Federalna writes.
