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SARAJEVO, February 19 (FENA) - A major step has been made towards the implementation of the project from the strategic regional importance, Southern Gas Interconnection between Bosnia and Herzegovina and Croatia, the enterprise BH-Gas stated.
BH-Gas, a gas production and transportation company, signed today Grant Agreement with the European Bank for Reconstruction and Development (EBRD) and Consultative Agreement for the preparation of an Environmental Impact Study and a Feasibility Study with the Consortium led by Dvokut-Ecro, consulting company providing services in the field of environmental and nature protection.
Signing of the Agreement was held at the BH-Gas Directorate and USAID Program Director Kent Larson attended the ceremony as well. The US Agency for International Development (USAID) supported the project with USD 500,000 grant.
Manuela Naessl, Director of EBRD Office in Bosnia and Herzegovina, expressed satisfaction that BH-Gas, the EBRD, the EU and USAID are collaborating on this project.
Diversification of supply is crucial for energy security, and planned interconnection can play a key role in this.
“The variety of potential supporters who are here today shows the high level of attention we are paying to this. Although we are eagerly awaiting the results of the new assessments, we also hope that in the meantime, a new gas law will be adopted in Bosnia and Herzegovina that will move the sector further towards compliance with the EU third energy package,” she said.
Jasmin Salkić, Director of BH-Gas, emphasizes the importance of Southern Gas Interconnection of Bosnia and Herzegovina and Croatia, which was also confirmed by the decision of the Government of the Federation of Bosnia and Herzegovina to declare the strategic importance of the project.
Salkić also stressed that the implementation and interconnection of the transport systems of Bosnia and Herzegovina (BH-Gas) and Croatia (Plinacro) will enable integration with the European natural gas market, diversification of both routes and sources of supply (LNG Krk, Caspian / Ionian-Adriatic Pipeline, European gas trading hubs) and thus create the conditions for long-term, secure and reliable supply of all natural gas consumers in Bosnia and Herzegovina.
Environmental and social impact assessment for the Southern Interconnection project between Bosnia and Herzegovina and Croatia (Posušje - Novi Travnik gas pipeline with an extension for Mostar) will be conducted in accordance with the EBRD's environmental and social policies, as well as local legislation requirements. Using the international tender procedure in accordance with the EBRD's policies and rules for selecting a consultant, the Contract was awarded to a Consortium led by Dvokut-Ecro. The total value of the signed contract will be financed from the stated amount of the provided grant.
The public has already been informed that the conceptual design of the gas pipeline has begun in August 2019. The conceptual design is funded by a grant from the European Union through CONNECTA Technical Assistance. The activities of defining, i.e. designing the main route with geodetic survey and geotechnical survey works have been completed.
The 160 km long Southern Interconnection between Bosnia and Herzegovina and Croatia is one of the largest line infrastructure projects currently underway. The complexity of the project is also reflected in the fact that it spatially covers four cantons / counties, which requires active participation and support of local communities at each stage of implementation.
Feasibility Study, Financial Sustainability Analysis and Cost Benefit Analysis were previously funded by European Union grant through the Western Balkans Investment Framework and CONNECTA Technical Assistance in 2013 and 2018 respectively. Completion of project documentation is planned for the end of 2020, which will result in obtaining an environmental permit and urban approval for the project.
(FENA) A. B.
