The Šepak–Novi Grad gas pipeline, worth over one billion BAM, will pass through 18 municipalities and eventually serve around 64 percent of the total population of Republika Srpska.
The tender for this largest energy project in Bosnia and Herzegovina, announced at the end of last year with a value of approximately 900 million BAM excluding VAT (over one billion BAM with VAT), received two bids: from the Turkish company Vemak Insaat and the company Konvar, which leads a group of bidders from Serbia and Republika Srpska. The tender is currently in the prequalification phase, where the technical documentation, licenses, and references of the submitted companies are being reviewed, after which the pricing and financial offer will be submitted.
Route Plan and Significance for the Population
Nedeljko Elek, director of Sarajevo-gas, the company issuing the tender, told “Nezavisne novine “(Independent Newspapers) that the future Šepak–Novi Grad main gas pipeline is expected to be completed within four years and is a crucial project for Republika Srpska.
“The gas pipeline will pass through 18 municipalities, starting from Donji Šepak, Bijeljina, Ugljevik—where it will connect to the thermal power plant—and will also cover Brčko, Modriča, Brod, Vukosavlje, Derventa, Prnjavor, Doboj, Laktaši, Srbac, Banja Luka, Prijedor, Novi Grad, and a few others. If you look at it, 64 percent of Republika Srpska’s population lives in these 18 municipalities,” Elek emphasized.
Economic and Environmental Effects of the Pipeline
He added that currently the price of one cubic meter of gas is one BAM, while in Eastern Sarajevo it is 1.5 BAM.
“Imagine how much this will mean, for example, for Banja Luka, how much cheaper the bills will be for citizens, and most importantly, it will solve air pollution issues. At the next session of the National Assembly of Republika Srpska, we will have a lex specialis law on the construction of the pipeline. This law has already been submitted to the Government of Republika Srpska. Once the law is adopted, the only remaining issues could be property-legal relations, but if we successfully resolve them, I expect the project to be completed in less than four years,” Elek stressed.
Gasification of Other Parts of Republika Srpska
Regarding gasification of other parts of Republika Srpska, Elek said that Eastern Sarajevo has already been fully gasified.
“We are also constructing a main pipeline along the route from the Jakovice (Šekovići) transfer station – Vlasenica – Milići – Igrišta – Han Pijesak, with a total length of 48 kilometers. For this project, 15 kilometers of the route were completed and the pipes were laid. All gas stations for all the locations have also been installed. The main problem is property-legal relations, and we are delayed because of that due to numerous complaints. In these areas of Republika Srpska, many people have moved away, so we do not have addresses to deliver expropriation notices, which slow us down significantly. Zvornik is already fully gasified, so once we finish these projects, over 85 percent of the population of Republika Srpska will have access to gas. Only the small area along the Drina and eastern Herzegovina will remain to complete full coverage,” Elek explained.
Strategy and Phases of Project Implementation
Recall that in November last year, the Government of Republika Srpska approved the implementation of the Šepak–Novi Grad main gas pipeline project, which is of strategic importance according to the planned Republika Srpska energy development strategy until 2035. According to this decision, the project is divided into three phases: construction of the Šepak–Banja Luka section, construction of connecting pipelines to municipalities and towns, and construction of the section from Banja Luka to Novi Grad.
