International energy regulatory body has threatened to launch a procedure against Bosnia and Herzegovina because of the investment steps that the country made and which, in turn, terminated the process of state aid assessment, the Energy Community's official confirmed.

The Energy Community said that the decision of Bosnia's Federation semi-autonomous entity (FBiH) to sign a contract with the China's Export-Import Bank on the guarantee for the construction of the Tuzla Power Plant Block 7 terminated the state aid assessment process, which was supposed to be conducted by the State Aid Commission.

“According to both parties, the assigned help is the state aid but it was not evaluated as the state aid. While working behind the back, the FBiH Government signed a guarantee contract act so we have nothing left to assess. The State Aid Commission has nothing else to do because this is a fait accompli,” said Energy Community Secretariat Director, Janez Kopac.

Once it launches the procedures against Bosnia, the Energy Community will inform about it all commercial banks that may be interested in the Bloc 7 construction.

“It is not fair that while they were in talks with us they worked behind the back and did everything to have this process completed without any further assessments. I cannot speak about damage at the moment, but the FBiH is likely to encounter problems with financing that investment,” said Kopac.

He did not want to speculate about possible steps of the China's bank but he was sure that all European or western banks that might have been interested in this investment will have problem with that because, as Kopac said, “an open infringement procedure means that an investment is problematic.”