Transparency International in Bosnia and Herzegovina (TI BiH) warns that amendments to the Law on the Southern Interconnection of the Federation of Bosnia and Herzegovina, which directly specify the investor for the project, set a dangerous precedent and risk undermining the public interest.
“The Draft Law on Amendments to the Law on the Gas Pipeline ‘Southern Interconnection of Bosnia and Herzegovina and Croatia,’ which the Government of the Federation of Bosnia and Herzegovina approved on March 25 and submitted to the Parliament of the Federation of Bosnia and Herzegovina for adoption under urgent procedure, not only undermines but effectively eliminates any possibility of competition. Its content raises numerous questions and highlights multiple risks that could undermine responsible governance and compromise the public interest by favoring particular interests,” stated TI BiH.
Considering the significance of this project for the entire economy and energy independence of Bosnia and Herzegovina, TI BiH emphasizes that no appropriate analysis or rational basis for a radical change in the approach to implementing the project, compared to the law adopted just a year earlier, has ever been proposed.
Specifically, the proposed changes in the law name the private investor as both partner and project holder, which sets a dangerous precedent and raises reasonable doubt that a tailor-made legal solution is being introduced – namely, legal provisions designed to serve particular interests. This creates a risk of regulatory capture, where personal, commercial, or political interests of certain actors are favored at the expense of the citizens of Bosnia and Herzegovina. Establishing such a practice in a country one of the highest levels of corruption in Europe would lead to catastrophic consequences for the realization of strategically important projects such as the Southern Gas Interconnection, according to TI BiH.
They added that the wider public in Bosnia and Herzegovina should be informed about the implications that such a model of implementation carries.
“The public should be familiar with the professional references of potential investors and the reasons for changing the model, which were neglected by the proponent in the proposed amendments. Also, the Federation of Bosnia and Herzegovina did not explain the reasons for the urgent procedure, which prevented a broader public debate, which is crucial considering the significance of the project and the possible consequences of its realization in the proposed manner,” explained TI BiH.
In conclusion, they highlighted that there are justified concerns regarding the alignment of this law with the existing constitutional and legal frameworks, as well as with obligations arising from the alignment of Bosnia and Herzegovina’s regulations with EU regulations.
“Taking all this into account, Transparency International Bosnia and Herzegovina calls on the Parliament and Government of the Federation of Bosnia and Herzegovina to organize a public discussion regarding this law so the public has insight into all aspects of these amendments, and to remove all doubts through reasoned debate, thereby contributing to the adoption of the optimal solution for the realization of such an important project,” said TI BiH.
Last week, during a telephone session of the Government of the Federation of Bosnia and Herzegovina, the Draft Law on Amendments to the Law on the Gas Pipeline “Southern Interconnection Bosnia and Herzegovina and Republic of Croatia” was confirmed and forwarded for urgent parliamentary procedure. The amendments introduce an American investor, AAFS Infrastructure and Energy d.o.o., which is registered in Sarajevo and is wholly owned by the American company AAFS Infrastructure and Energy LLC.
