Proposed Amendments to the South Interconnection Law: BH-Gas Excluded, Project Holder to be American Company AAFS

(Patria) - The Minister of Energy, Mining and Industry of FBiH, Vedran Lakić, has submitted amendments to the Law on the "South Interconnection BiH and the Republic of Croatia" gas pipeline to the FBiH Government, according to which the project holder will be the company AAFS Infrastructure and Energy d.o.o. based in Sarajevo, thereby eliminating the company BH-Gas from the existing law.

The draft law stipulates the deletion of the existing Article 4, which gave BH-Gas the authority for its implementation, and the inclusion of the company AAFS, writes Istraga.ba. In addition, the amendments provide for the extension of the gas pipeline to Grude, Donji Vakuf, Gornji Vakuf, Kladanj, and Tuzla.

"The investor will realize the project of constructing the 'South Interconnection BiH and the Republic of Croatia' gas pipeline through:
a) construction of an interconnector transport gas pipeline in Bosnia and Herzegovina on the route Posušje - Tomislavgrad - Šuica - Kupres - Bugojno - Novi Travnik/Travnik and the route Posušje - Grude - Široki Brijeg - Mostar;
b) construction of a branch for Livno, Gornji Vakuf/Uskoplje, Donji Vakuf, Jajce, and a branch to Čapljina;
c) construction of an additional route Kladanj - Tuzla", the draft law states.

The rights and obligations of the contracting parties regarding the realization of the project will be regulated by an agreement that the investor and the FBiH Government will conclude within 30 days from the date of entry into force of the amendments to the law.

It is further stated that BH-Gas, or as stated in the amendments to the law, "the operator of the existing transport system in FBiH", as the previous holder of the investment and technical documentation and valid acts, will hand over the documentation to the investor within 15 days of the request, with the obligation of the investor to cover the actual costs incurred by BH-Gas for the preparation of the documentation.

It is emphasized that BH-Gas, or as stated in the text, "the operator of the existing transport system in FBiH", will enable the existing own transport system (in stages) for reversible operation and adapt it to technical requirements, thereby ensuring stable supply to existing consumers in FBiH.

"Except for the provisions of the Law on Business Companies, any direct or indirect change in ownership or management control over the investor, including the acquisition or disposal of more than 15% of shares, alienation of economic interests, granting of options, or in any other way encumbering shares in the investor, is not permitted without the prior approval of the FBiH Parliament.

This does not apply to financing or refinancing, granting or executing collateral, options, convertible instruments, transfers of economic interests, internal reorganizations, or changes at the owner level that do not lead to a change in control", it is stated.

The investor is obliged to report any change of ownership within the company.

"Failure to comply with this obligation constitutes grounds for initiating proceedings to revoke the rights granted by this Law", the draft adds.