We are launching the largest projects since the war, and the price of electricity will not increase!

We are launching the largest investment projects since the war in Bosnia and Herzegovina, and we will not seek an increase in electricity prices, said Elvedin Grabovica, general director of „Elektroprivreda“ in an interview with the Patria News Agency (NAP).

Grabovica yesterday awarded scholarships to 30 promising students, and likely future employees of this company. According to him, this is only a fraction of what this state-owned company does, and which will have positive effects on the overall economic situation in BiH. The export of electricity generated by EP BiH last year was a key factor in improving the country's foreign trade balance and practically saved it from bankruptcy.

NAP: Elektroprivreda plans to invest two billion KM in capital projects. What will this mean for the prosperity of BiH, and how much will it contribute to improving the economic situation?

Grabovica: Next month, we are opening tenders for all three capital facilities, which are „Blok 7“ in Tuzla worth up to 1.5 billion marks, then the Podveležje wind farm worth up to 120 million KM, and the HE „Vandruk“, also worth close to 120 million marks. In addition to these investments, investments are planned in the maintenance of the distribution network and production facilities. In any case, in any field, including energy, when you invest two billion marks, it is understood that it significantly contributes to employment and, above all, to the launch of investment in BiH.

By launching a facility like „Blok 7“, existing facilities that are becoming obsolete due to age are being replaced. We are creating jobs and ensuring BiH's energy independence so that we can continue to be leaders in electricity production and not become an energy-dependent country like most countries in the region.

NAP: When is the official start of construction of these facilities expected, and are these the largest projects since the war?

Grabovica: We expect the construction of all three facilities to start this year, and when they will be completed depends on the construction dynamics. These are the largest projects since the war, not only in the energy sector but in general. After Corridor 5C, these are the largest and most significant projects for BiH. It is important to me that the Management I lead has brought about the start of construction of the three largest facilities. Unlike the previous 20 years when not a single one was built.

NAP: Was it possible to realize such significant projects before?

Grabovica: Absolutely, it could have been done before, but it's not just the fault of previous managements. Therefore, for such projects to be launched, a general social and political consensus is needed. And, in the previous period, I don't think there was the political or other will to start it. People were dealing with other things, not with regulations, procedures, legal regulations, and everything that is necessary to reach this phase. We spent two and a half years working according to investment standards and have reached the phase of launching these investments. And I must emphasize the role and significance of the Federal Government, led by Nermin Nikšić, and the relevant minister Erdal Trhulj, who have greatly helped the management of Elektroprivreda.

NAP: Will there be a change in the price of electricity in 2014?

Grabovica: Electricity prices are under the jurisdiction of FERK. What I can say with certainty is that we will not, nor do we intend to, initiate a tariff procedure this year. And I am not sure that FERK will do it independently. I sincerely hope that electricity prices will remain the same this year.

NAP: Some media have accused you of allegedly harmful renewal of the contract with EFT. What is this actually about?

Grabovica: These are pure manipulations. There are no harmful contracts involved. They messed up in their articles. They talked about „Elektroprivreda HZHB“ and showed their contracts, while writing about Elektroprivreda BiH and some companies with which we have no contracts. All our surplus electricity sales are conducted in accordance with the law. We are a transparent company, not only to the competent institutions but also to anyone who has requested our contracts. They did not even deign to publish our denial, and we will seek justice in court due to the damage caused by such reporting.

NAP: What is the situation in the mines that are part of Elektroprivreda? What are you doing to improve the working conditions of miners?

Grabovica: We are practically working from month to month, but it is a long process. What we did at the start was to equalize the hot meal and holiday bonus for miners with the employees of „Elektroprivreda“. We managed to invest over 130 million KM through recapitalization and equipment modernization, which creates basic prerequisites for increasing productivity and improving working conditions for miners in the mines, which ultimately contributed to better financial results, although they are not yet at a satisfactory level. I must tell you that these miners deserve better conditions, and I think they have recognized that this management has made it one of its priorities.

NAP: For years, there has been talk about the possible privatization of Elektroprivreda, what is your stance on this?

Grabovica: My stance is clear and precise. As a professor at the Faculty of Economics and as a person who has worked in the private sector, I know that ownership structure does not determine the efficiency and operation of a company at all. Therefore, we have many examples where state-owned companies are more successful than private ones. Therefore, I believe that in addition to being dependent on everything else, we should not be dependent in the energy sector. There should not even be any thought of privatizing „Elektroprivreda“.

NAP: How do you comment on the criticism of certain public enterprises that are accused of financing political parties and acting as party ATMs?

Grabovica: As for financing, we are financing scholarships for 30 best students. The common belief is that public enterprises are piggy banks. „Elektroprivreda“ was also mentioned, but I have not read a single argument or proof that this is true. If someone has evidence, let them submit it to the competent institutions, and just as I am responsible for the business with my signature, I hope the time will come when journalists will be responsible for such writings.