The Government of the Federation of Bosnia and Herzegovina has accepted the initiative for the adoption of the Decision on the temporary ban on the export of firewood and pellets from Bosnia and Herzegovina until 31.12.2022.
They sent an initiative to the Council of Ministers of BiH to instruct the Ministry of Foreign Trade and Economic Relations of BiH to prepare and send to the Council of Ministers of BiH for consideration and decision the Decision on temporary ban on export of fuel from BiH as soon as possible and no later than fifteen days wood and pellets until 31.12.2022. provided that this decision will not have negative effects for BiH in terms of damages under already concluded / valid export contracts, ie to be made so as not to apply to valid concluded contracts until the date of entry into force of this decision.
The explanation of the initiative states that the legal basis for the decision is contained in Article 7, paragraph (6) of the Law on Foreign Trade Policy of BiH, which stipulates that the Council of Ministers of BiH may, in accordance with obligations under trade agreements, prohibit export, import or transport certain goods through BiH or prescribe the conditions under which such goods may be imported, exported or transported in transit in order to prevent endangerment of human life, health and the environment.
It was also pointed out that, following the relations between supply and demand, as well as the movement of the price of firewood and pellets, it was stated that in BiH due to increased demand on the world market there was a significant increase in exports. Also, the situation on the market of firewood and pellets in Bosnia and Herzegovina has reached a worrying level and requires an urgent response in order to stabilize the domestic market.
Namely, many BiH producers and traders export firewood and pellets in quotas of 90 percent, and some companies even export 100 percent of their production. Due to this procedure, there is a justified fear that these products will not be in sufficient quantities for the needs of BiH. markets.
Therefore, the goal is to protect the domestic market, the needs of the population and provide a sufficient amount of fuel for the next season, Federalna writes.
On April 22nd, the Government of the Sarajevo Canton passed the Decision on the adoption of the “Study on the justification of the construction of pellets in the Sarajevo Canton”, which was prepared for the Ministry of Economy by Izudin Kesetovic and Armin Avdic.
The Minister of Economy of the Sarajevo Canton, Adnan Delic, announced in early February that the Ministry of Economy of the Canton Sarajevo together with KJP “Sarajevo – Forests” d.o.o. Sarajevo will enter the realization of the project of establishing a factory for the production of pellets within this public company.
Avdic stated that the pellet factory is justified from the social as well as from the financial aspect, and that it has a good development potential for expanding production and activities.
“In addition, we should keep in mind the environmental segment, which is extremely important to us. The Government of Sarajevo Canton has already implemented several projects aimed at improving air quality in the Canton, and launching a pellet plant is certainly the next step. In addition to improving air quality by reducing pollution, it will also accelerate the conversion of poor forests into high quality beech forests that are a source of oxygen and stabilizers necessary to preserve our environment,” said Avdic, one of the authors of this study.
Delic said that he was satisfied with the analysis from this study, and that the Ministry and the cantonal company will immediately start implementing the next steps necessary to start the production of pellets within this company as soon as possible.
“All the observed parameters are positive and that is an additional motive for us to bring this project to an end. First of all, as I said before, our goal is a better standard of living in the Canton, and that means a healthy living environment. This study shows that there are significant long-term positive effects on reducing air pollution in the Sarajevo Canton in the next few years, and in addition we aim to stabilize the price of pellets in the Sarajevo Canton and of course establish a standard in production quality,” said the minister.
He also stated that the realization of this project will be compatible with the activities of detailed and comprehensive arrangement of the forest area in the Sarajevo Canton, which is planned to be realized by the company “Sarajevo-forests” in the coming years.
By starting the production of pellets within the activities of the company “Sarajevo – Forests”, we will complete the entire wood processing process in this company, and adequate management of forest resources in the Sarajevo Canton will enable raising the quality of forest areas and overall faster forest growth and implementation of coppice and degradation in high forests, which will significantly increase and multiply the effects obtained by this investment, and our forests as a natural resource will be increased much faster. Also, this is an opportunity to improve the technical processes in the company, as well as to enable the company to perform additional activities – said the Minister.
The Ministry also points out that the proximity of the raw material base, as well as the sales market, will enable relatively low costs of production and delivery of pellets to end users, ie customers.
The total value of this investment is estimated at 8,457,000 BAM and it includes the purchase of land, arrangement and reconstruction of existing facilities and utilities, as well as arrangement and purchase of technological part for the production of pellets, supporting equipment, machines needed for supplying, cutting and transporting biomass from forest to plant and other costs. The mentioned funds were planned and provided through the budget of the Ministry of Economy of Canton Sarajevo and the financial plan of KJP “Sarajevo – Forests”, it was announced from the Service for Protocol and Press of CS.