House of Peoples to discuss Block 7 and Chinese loans on April 1st

(Patria) – Delegates of the House of Peoples of the FBiH Parliament will decide on the loan debt of 'Elektroprivreda BiH' to the Export-Import Bank of China for the construction project of Block 7 of the Tuzla Thermal Power Plant at the session on April 1st.

The House of Representatives of the FBiH Parliament gave consent to Elektroprivreda BiH on March 7th for the debt for the construction of that block, while the consent of the House of Peoples of the FBiH is also required for the realization of the debt.

This concerns the consent for the loan debt of the company Elektroprivreda BiH to the Export-Import Bank of China for the construction project of Block 7, 450 MW of the Tuzla Thermal Power Plant, specifically for a loan of 1.4 billion KM.

European Commissioner for Enlargement Johannes Hahn previously stated that he was surprised by the decision of the House of Representatives of the FBiH Parliament to support the construction of Block 7 of the Tuzla Thermal Power Plant with Chinese loans.

Hahn stated on Twitter that this raises serious questions about Bosnia and Herzegovina's commitment to international agreements and European rules within the framework of the Energy Community Treaty.

"I am sure that the representatives had good reasons for their decision and that they will be able to explain it to their citizens," Hahn said, adding that issues such as environmental impact assessment, state aid, and public procurement procedures will certainly be carefully considered during the opinion-giving process.

Commissioner for European Neighbourhood Policy and Enlargement Negotiations Johannes Hahn had previously stated in an interview with the Financial Times that he was concerned that some countries were taking very large loans from China to pay for infrastructure, thereby increasing the risk of long-term damage to their fragile economies. According to him, the EU would be a fairer partner.