Government of the Federation of BiH Opens Dialogue with US Company on Major Infrastructure Projects

The Government of the Federation of Bosnia and Herzegovina has adopted an Information on the received Letter of Intent from the US-based company AAFS Infrastructure and Energy LLC, thereby opening an institutional and transparent dialogue on the potential development of key infrastructure projects in the Federation of BiH, primarily in the fields of energy and transport.

The adopted Information does not imply the awarding of a concession nor the assumption of any obligations. Instead, it represents a formal basis for discussions, analyses, and consideration of possible cooperation models, strictly in line with applicable legislation and the public interest.

The Letter of Intent, submitted to the Federal Ministry of Energy, Mining and Industry by AAFS Infrastructure and Energy LLC, refers to an integrated infrastructure framework. This includes the development of a new gas interconnection between Bosnia and Herzegovina and Croatia (the Southern Interconnection), the construction of gas-fired power plants with accompanying gas infrastructure, as well as the modernization of international airports in Sarajevo and Mostar.

Series of Meetings Planned

Representatives of the US LNG trading company have arrived in Sarajevo, further intensifying discussions on the Southern Interconnection project.

Federal Minister of Energy, Mining and Industry Vedran Lakić stated that the Government’s decision represents a responsible and realistic institutional step toward strengthening the energy security of the Federation of BiH.

“Today, the Federation of BiH is supplied with natural gas from only one direction and a single source. This represents a serious risk, especially during the winter months. The Southern Interconnection is a strategic project that enables diversification of supply sources and routes, greater security, and a more stable energy system,” Minister Lakić said.

He emphasized that the Government clearly separates individual projects and that each will be considered independently, transparently, and exclusively within the framework of the law.

“This is not a decision on a concession, nor is it a contract. It is a message that the Federation of BiH is willing to engage in dialogue, analysis, and responsible planning. All processes will be public, lawful, and conducted in the interest of citizens,” Lakić added.

The Minister further noted that the construction of new gas infrastructure is also crucial for the broader development of the Federation of BiH, including the stability of the electricity system, industrial growth, and modernization of transport infrastructure.

“Reliable energy is the foundation for industrial development, new jobs, and stronger international connectivity. Our goal is a long-term stable, secure, and sustainable energy system for the Federation of BiH,” he concluded.

By the Government’s conclusion, the Federal Ministry of Energy, Mining and Industry has been tasked with continuing the institutional dialogue within its competences and, if necessary, preparing amendments to the Law on the Southern Interconnection to enable project implementation through additional models, including a concession-based model.

The Ministry will regularly inform the Government of the Federation of BiH and the public about all further activities.

Source: Klix.ba


Supported by: Government of Canton Sarajevo