Krišto Puts Everything on the Agenda: How Will Helez, Konaković, and Forto Vote on Interconnections, Procurement of American Helicopters, Oil Quality...

By Istraga.ba

Both the South and the New East interconnections are expected to be on the agenda of the BiH Council of Ministers session scheduled for next Thursday, Istraga.ba has learned. The Patria News Agency previously published details of the drama that unfolded at the last session of the BiH Council of Ministers. 

The Chairperson of the BiH Council of Ministers, Borjana Krišto, has submitted the draft agenda for the next session to the expert services, and according to this draft, all materials that have been contentious in recent months and years should be considered at the 11th session of this convocation of the Council of Ministers, scheduled for Thursday at 4:30 PM.

In addition to the "South" and "New East" gas pipelines, the BiH Council of Ministers should consider the Draft Law on Foreign Affairs of BiH, the Draft Law Amending the Law on the HJPC, the Proposal of the Decision on the Cessation of Validity of the Decision on the Multi-year Helicopter Overhaul Project, the Proposal of the Decision on the Procurement of Helicopters for the Armed Forces of BiH, the Proposal of the Decision on Financing the Multi-year Project of Training Officers for the Aviation Military Registry Specialty, the Proposal of the Decision on the Quality of Liquid Petroleum Fuels, the Proposal of the Decision on the Temporary Ban on the Export of Certain Wood Timber Products...

We remind you that at the last session, ministers from Republika Srpska, Staša Košarac and Zoran Tegeltija, ultimatumly requested that the Draft Basis for Conducting Negotiations for the Conclusion of the Agreement between Bosnia and Herzegovina and the Republic of Serbia on the Construction of the "New East Interconnection of Bosnia and Herzegovina and the Republic of Serbia" gas pipeline on the route of the Serbia - Bosnia and Herzegovina - Bijeljina - Banja Luka - Prijedor - Novi Grad border, the Draft Basis for Conducting Negotiations for the Conclusion of the Agreement between Bosnia and Herzegovina and the Republic of Croatia on the Construction of the "South Interconnection of Bosnia and Herzegovina and the Republic of Croatia" gas pipeline on the route Zagvozd (HR) - Posušje (BiH) - Novi Travnik/Travnik with an offshoot to Mostar, and the Proposal of the Decision on the Quality of Liquid Petroleum Fuels be put on the agenda of the next Council of Ministers session.

The ultimatum was justified by the claim that the "Trojka" (referring to the coalition partners) had promised and agreed with Dodik on several "infrastructure" projects, which would be proposed by the Ministry of Foreign Trade and Economic Relations.

Tegeltija even threatened Borjana Krišto that if she did not immediately set a date for the session next week, they (Serbs) would leave the Council of Ministers session.

Under pressure from coalition partners from SNSD, Krišto decided to put all contentious points on the agenda.

What is the South Interconnection?

The South Interconnection is part of the Adriatic-Ionian gas pipeline, which would transport gas from Azerbaijan to Balkan countries. The construction of this gas pipeline would reduce dependence on Russian gas. According to official documents of EU institutions, the goal of this gas pipeline, which would pass through Croatia, Montenegro, BiH, and Albania, is to provide a new transport route for natural gas supply from Azerbaijan. The BiH leg would go through Posušje, Mostar to Novi Travnik. The Zagvozd-Novi Travnik gas pipeline is, incidentally, on the list of priorities of the European Energy Community, and the holder of this project is BH Gas. The European Bank for Reconstruction and Development (EBRD) has approved 101 million euros for the realization of this project, while USAID has also approved 500 thousand dollars for the preparation of project documentation.

For a year now, the leaders of HDZ BiH in the House of Peoples of the Federation have been blocking the adoption of the Law on the "South Interconnection Bosnia and Herzegovina and Croatia" gas pipeline.

"This law regulates issues of importance for the realization of the project of constructing the gas pipeline 'South Interconnection Bosnia and Herzegovina and the Republic of Croatia' on the route Zagvozd (Republic of Croatia) - Posušje (Bosnia and Herzegovina) - Tomislavgrad - Šuica - Kupres - Bugojno - Novi Travnik/Travnik with an offshoot to Mostar (hereinafter: South Interconnection BiH and the Republic of Croatia) on the territory of the Federation of Bosnia and Herzegovina, including the project infrastructure, interconnection point, investor, financing method, public interest and implementation of expropriation of real estate, land use, administrative procedures for issuing permits and the involvement of cantonal governments, competent ministries and other administrative bodies, institutions and business companies, and other issues of importance for the realization of the project," it is stated in Article 1 of the proposed Law.

Article 4 of this law states that "the economic company for the production and transport of gas BH-Gas d.o.o. Sarajevo is determined as the investor for the South Interconnection BiH and the Republic of Croatia gas pipeline project."

HDZ BiH cadres in the institutions of BiH and the Federation of BiH do not want to support this project if the control over gas transport from the southern interconnection is controlled by the federal public company BH-Gas. Therefore, they demand that this company, as the only federal company responsible for gas transport, be excluded from the law. HDZ delegates have therefore proposed the establishment of a new company to be founded by the West Herzegovina, Canton 10, and Central Bosnia cantons. In June 2022, HDZ delegates in the House of Peoples of the FBiH submitted amendments to the Law on the "South Interconnection Bosnia and Herzegovina and Croatia" gas pipeline.

They precisely state that BH-Gas must be excluded from the law, and that the cantons establish a company that would be responsible for gas transport via the southern interconnection. HDZ BiH proposes that the Federation be the guarantor for raising a loan in the amount of 200 million KM, and that the gas pipeline be managed by companies managed by cantons where HDZ BiH governs.

After the FBiH Government rejected the proposal to exclude BH-Gas from the southern interconnection, HDZ decided that the Government of West Herzegovina Canton would establish a company for gas distribution.

"The Government of West Herzegovina Canton, at its session on Tuesday, determined the text of the Proposal of the Decision on the Establishment of the Public Company 'South Interconnection Gas Pipeline' d. o. o., which has been sent to the parliamentary procedure. Given that the South Interconnection Bosnia and Herzegovina and the Republic of Croatia gas pipeline largely passes through the territory of West Herzegovina Canton, the procedure for establishing the Public Company 'South Interconnection Gas Pipeline' d. o. o. is being initiated, which will perform activities of public social interest for West Herzegovina Canton in the field of energy, creating prerequisites and conditions for the realization of gasification projects, construction of the gas pipeline distribution network, and connection to the gas network in West Herzegovina Canton," it was announced on August 30 last year by the Government of ZHK.

In this way, HDZ BiH is trying to take control of gas transport from Azerbaijan. Thus, Sarajevo, despite the "alternative supply method," would become a hostage of Široki Brijeg and Banja Luka, which would control the gas pipelines to the capital of Bosnia and Herzegovina. The authorities in Sarajevo would, in fact, only be guarantors for borrowing. All other matters would be decided by the governments of ZHK and the Government of RS.

What is the New East Interconnection?

The New East Interconnection is a joint project of Serbia and Republika Srpska, initiated without the consent of the institutions of Bosnia and Herzegovina. The agreement on the construction of this gas pipeline was signed in March last year by officials of Republika Srpska and the Republic of Serbia. The main gas pipeline from Serbia to Republika Srpska, it was announced at the time, would be completed within the next five years along the route Inđija – Mačvanski Prnjavor – Bijeljina – Doboj – Banja Luka – Prijedor – Novi Grad. This would be the second gas interconnection between Serbia and Republika Srpska, i.e., BiH. Given that it is an interstate project, the consent of BiH institutions is required.

This route would transport gas from Russia, which arrives in the Balkans via the TurkStream pipeline. The length of the gas pipeline on the territory of the Republic of Serbia is planned to be 90 kilometers, and on the territory of the Republic of Srpska about 320 kilometers. The contractor is the company from Republika Srpska - Gas Res.

Helicopter Overhaul and Procurement

In March of this year, materials related to the overhaul of old and procurement of new helicopters were removed from the agenda of the BiH Council of Ministers session. This concerns the procurement of two American UH-2 helicopters for the Armed Forces of Bosnia and Herzegovina. The procurement was supposed to be realized within the framework of a project by the BiH Ministry of Defense and the US authorities. The money for the procurement of helicopters was to be provided by reallocating funds from the budget item intended for the "overhaul" of Russian MI 8 helicopters. These Russian helicopters can only be overhauled at the Bijeljina-based company ORAO, which has a "license" from Russia. Ministers from SNSD oppose the decision to reallocate funds intended for the overhaul of Russian helicopters for the procurement of American helicopters.