GRABLJIVICE FISHING IN TROUBLED WATERS Is it time to investigate Nikšić's and Grabovica's infrastructure and other projects?

By: A. Čorbo-Zećo

In Bosnia and Herzegovina, political and business networks often intertwine, and Elvedin Grabovica, former director of Elektroprivreda BiH, seems to have become a key figure in many infrastructure projects, both in the energy sector and in other areas. Prime Minister Nermin Nikšić does not hide that he is often in the company of this controversial businessman with whom members of Nikšić's family once had a joint company (CTK) in the defense industry.

We will write about that company, which otherwise took loans from Igman from Konjic, as evidenced by audit reports, in one of the following installments of the story.

Grabovica has been known for years for his close relationship with SDP leader Nermin Nikšić, and his significant influence on political decisions concerning large public procurements and privatizations. Although he has often been at the center of political scandals, Grabovica has managed to become a key player in the business world in BiH, using his political contacts. He built his relationships with Croatian companies thanks to his relationship with Nikšić, and recently also with the controversial Zdravko Mamić.

Grabovica and Mamić

One of the important aspects of his political influence is evident in projects such as the modernization of software systems, like the one at Elektroprijenos BiH. Although the European Bank for Reconstruction and Development (EBRD) initially approved a loan for this project, the arrangement was eventually canceled. The reason? Suspicions of corruption related to the companies that applied, among which Prointer ITSS and people connected to Igor Dodik, son of Milorad Dodik, stood out, which caused concern within international financial institutions.

Despite this, Elektroprijenos BiH has not abandoned the realization of the project, and Grabovica allegedly still has a role in its renewal, as Slobodna Bosna wrote about.

Nermin Nikšić and Grabovica attended the celebration of the company Končar in Zagreb, which the public was never informed about. If Slobodna Bosna had not published their picture from Zagreb at the Končar party, Nikšić would probably have denied going to Zagreb with Grabovica, just as he told Klix that all of this was actually a lie.

„That is something that will happen in the future. They are killing themselves trying to find something on me, but they can't, so they predict that it will happen. First, let's ask, Cengiz doesn't need to do it, we need to bring someone else, why shouldn't Končar, a world company, do it if it's the best. If it meets all the conditions, who should do Prointer? I really don't know what the mistake is, but let them keep investigating,“ Nikšić said.

The question arises how it is possible that political and business connections can influence major projects so openly in front of the public (are tender conditions being rigged for selected bidders)?

In that case, Nikšić refers to institutions and emphasizes that he himself will file charges if necessary. However, trust in judicial institutions has long been at a minimum, and the fact that there are no convictions for high-level corruption further jeopardizes that trust.

Precisely for this reason, Grabovica and others like him have been fishing in troubled waters for years. Thus, he recently boasted in a company that he also played a role in announcing the tender for the construction of the Prenj tunnel, thus continuing to influence important projects without any official function or position. A similar situation is happening with the Turkish company Cengiz, which, by all accounts, already dominates projects on Corridor Vc, and is now expected to take over the key phase of the Prenj tunnel construction.

The project, which began in 2022, encountered serious difficulties in pre-qualification, in which only two Turkish companies – Cengiz and Makyol – met the conditions. The former is the favorite and has already gained an advantage through donations for the reconstruction of the railway line in Jablanica. Suspicions of corruption and political connections of these companies with Grabovica and Nikšić are becoming increasingly clear. The following fact confirms this - the Korean-Turkish consortium DL-Limak, which invested serious effort and prepared all the necessary documents, decided to withdraw from the project because it assessed that the chances of winning were predetermined.

Nikšić recently received a delegation from Cengiz, expressing gratitude for their contribution to the railway reconstruction. The meeting further fuels suspicions that private interests are hidden behind this infrastructure project. The open connection with Cengiz's company, which has a favorable status in BiH, leads to the question: is the Prenj project just another way to secure lucrative deals through political connections?

The situation becomes even more complicated when considering the financial sustainability of the project. JP Autoceste FBiH, which is responsible for the construction of the Prenj tunnel, faces delays on other projects, especially those where Cengiz is involved.

The EIB and EBRD, two key creditors supporting projects in BiH, refuse to increase their investments and demand additional guarantees. However, the relevant ministry and the Government of the Federation of BiH plan to simply pass a conclusion without a real legal obligation, which further increases uncertainty regarding the financial structure of a project of generational importance.

Despite all the challenges, there is a serious risk that the project will be postponed for ten years instead of five, which would further increase costs and deepen existing infrastructure problems.

Although all eyes are currently on Grabovica and his influence on projects, the key decision on the future of the Prenj tunnel will be made by the creditors. It would be extremely important for the EIB and EBRD to recognize the suspicious aspects of this tender and make the right decision based on that – which could have long-term consequences for BiH, its citizens, and the policy of infrastructure projects. It is much more important that the Prenj tunnel is completed quickly and efficiently than for Nikšić's bagman to fulfill personal goals that conflict with the goals of the citizens of BiH.

The BiH judiciary, such as it is, has recently been inundated with accusations against the leaders of the Trojka coalition. The head of diplomacy and leader of NIP, Elmedin Konaković, was questioned in the BiH Parliament due to a failed tender after it was established that it was rigged for his godson's daughter. The connections of Konaković with the Tito i Dino cartel remain unresolved.

On the other hand, the Minister of Transport and Communications and president of Naša stranka BiH, Edin Forto, is facing multiple hearings in the BiH Parliament, as well as an investigation for attempting to bribe SIPA inspectors and influencing Minister Bošnjak, all related to suspicious projects on Bjelašnica.

For now, the suspicious activities of the third partner in the Trojka coalition, Nermin Nikšić, leader of SDP and Prime Minister of FBiH, are least perceived in public.

However, it is not that there are no reasons for the judiciary to turn its spotlight on Nikšić as well, and cases such as the loan to CTK from the budget of the federal company Igman, the Prenj project, and the tender at Elektroprijenos are sufficient evidence of such a need.