Silence from authorities after it was determined that the guarantee for Block 7 constitutes illegal state aid

(Patria) - The Energy Community Secretariat announced yesterday that the Advisory Board has submitted an official opinion in the case against Bosnia and Herzegovina. The case concerns the guarantee of the Federation of Bosnia and Herzegovina for a loan taken by Elektroprivreda BiH from China's Exim Bank for the construction of Block 7 of the Tuzla thermal power plant.

"The Advisory Board gave its opinion on Monday in case ECS-10/18 against Bosnia and Herzegovina. The case concerns a public guarantee of the Federation of Bosnia and Herzegovina in favor of the Export-Import Bank of China for a loan from the latter to the public utility company Elektroprivreda BiH d.d. Sarajevo for the Tuzla 7 project. The State Aid Council of Bosnia and Herzegovina determined that this guarantee does not contain elements of state aid. The Advisory Board confirmed the Secretariat's argument that the decision of the State Aid Council is not in line with the acquis on state aid and that the public guarantee constitutes state aid. The opinion of the Advisory Board is required as a final step before the Council of Ministers makes a decision on the matter," they stated from the Energy Community.

This significant decision has received very little media coverage.

As pointed out by the Aarhus Center Tuzla, this is yet another confirmation that Block 7 of the Tuzla thermal power plant has no future.

No officials have reacted, and it remains to be seen whether certain representatives of the authorities and Elektroprivreda will continue to play with the money of the citizens of Bosnia and Herzegovina and stubbornly rush into ruin at any cost.

The project for the construction of Block 7 of the Tuzla thermal power plant is facing serious problems also due to the withdrawal of the company General Electric from delivering the equipment defined by the signed contract.