FBiH Govt initiates dialogue with AAFS Infrastructure and Energy on strategic energy projects

A primary focus of this potential cooperation is the "Southern Interconnection," a critical gas pipeline connecting Bosnia with the Republic of Croatia. Additionally, the proposal includes the construction of gas-fired power plants, the expansion of the Kladanj-Tuzla pipeline, and the modernisation of international airports.

The Government clarified that the Southern Interconnection project could be considered under the FBiH Law on Concessions, allowing for the possibility of a self-initiated offer from the company. To facilitate this, the Ministry has been tasked with preparing amendments to the Law on Southern Interconnection to permit alternative implementation models, including concession awards.

"The Federation currently relies on a single source and direction for natural gas, which poses a significant risk, especially during winter," stated Vedran Lakic, FBiH Minister of Energy, Mining, and Industry. He emphasised that the Southern Interconnection is a strategic necessity for diversifying supply and ensuring a stable energy system.

Minister Lakic was careful to note that Tuesday’s decision does not constitute a contract or a final concession award. Instead, it serves as an institutional step toward evaluating projects that could bolster industrial development and electricity stability. The Government maintains that all infrastructure projects must be handled separately and transparently, ensuring every process remains public and strictly within the existing legal and regulatory frameworks of Bosnia and Herzegovina.