"Energoinvest" Seeks Measures from Bevanda to Save Domestic Economy

Bosnian companies "Energoinvest" Sarajevo and "Elektroinžinjering" from Banja Luka, supported by smaller Bosnian firms, are determined to participate in significant investment projects in the power sector, which has become possible with the unblocking of "Elektroprijenos" operations, the Patria News Agency (NAP) has learned.

They are requesting that domestic bids be valued at least 20 percent better than foreign ones, the Patria agency has learned. This is particularly relevant for investments in the power grid, which will amount to tens of millions of marks.

A meeting of representatives from 14 companies in this sector, attended by representatives of the Metalworkers' Unions of BiH, RS, and KS, concluded that an initiative should be launched to amend the existing legal framework to improve conditions for domestic firms to participate in power sector projects.

A letter has been sent to Vjekoslav Bevanda, Chairman of the Council of Ministers of BiH, stating that the Stabilization and Association Agreement between the EU and BiH has not yet entered into force, and that domestic companies are operating in an unfavorable environment.

- Business conditions are characterized by inadequate promotion of the domestic economy. It is necessary to raise their level of competitiveness, as the reconstruction of Bosnia and Herzegovina is practically still ongoing. Past experiences show that foreign bidders only engage domestic firms pro forma to meet the conditions for preferential treatment, meaning that after winning projects, they engage domestic companies at significantly lower prices than they contracted with investors. Therefore, we propose amending the Instructions on the Application of Public Procurement in BiH – the letter states, among other things.

Thus, companies led by "Energoinvest" and "Elektroinžinjering" have proposed that when calculating bids, the price of domestic bids be reduced by a preferential factor, specifically by 20 percent for contracts awarded in 2014-2018, 15 percent for contracts awarded from 2019 to 2022, and 10 percent for contracts from 2023 to 2025.

- In the case of goods procurement contracts, at least 50 percent of the total value of incorporated goods must originate from BiH, and at least 50 percent of the labor force for contract execution must be residents of BiH – further proposals for amendments to the Instructions on the Application of the Law on Public Procurement of BiH state, NAP reports.

Earlier, the Bosnian news agency Patria also reported the stance of the Prime Minister of the Federation of BiH, Nermin Nikšić, who stated that he would do everything in his power to ensure that a portion of the "cake" from the accumulated 300 million on "Elektroprijenos's" account also reaches Bosnian companies.