TI BiH: Directly defining an investor in the South Interconnection law is a dangerous precedent

(Patria) - Transparency International in BiH warns that amendments to the FBiH South Interconnection Law, which directly define which investor will realize the project, represent a dangerous precedent and as such carry the risk of serious damage to the public interest.

"The Bill on Amendments and Additions to the Law on the Gas Pipeline 'South Interconnection Bosnia and Herzegovina and the Republic of Croatia', which the Government of the Federation of BiH determined on March 25 and sent for adoption to the FBiH Parliament under an urgent procedure, undermines not only transparency but also eliminates any possibility of competition. The content itself opens numerous questions and indicates multiple risks that can lead to jeopardizing responsible management and compromising the public interest by favoring particular interests."

Given the importance of this project for the entire economy and energy independence of BiH, TI BiH emphasizes that no adequate analysis and rational basis has been offered for a radical change in the approach to project implementation compared to the Law adopted just one year earlier.

"Specifically, the proposed amendments name a private investor in the law itself as a partner and project implementer, which represents a dangerous precedent that raises justified suspicion that this is a so-called tailor-made legal solution, i.e., legal provisions tailored to particular interests.

In addition to opening the risk of regulatory capture, which favors the personal, commercial, or political interests of certain actors at the expense of BiH citizens, establishing such a practice in a country with one of the highest levels of corruption in Europe would lead to catastrophic consequences in the implementation of strategically important projects such as the 'South Interconnection' gas pipeline.

The implications that such a project implementation model carries are something that the entire BiH public should be informed about, as well as about the professional references of the potential investor and the reasons for changing the model, all of which the proposer has neglected in the proposed amendments to the Law," state TI BiH.

Furthermore, the Government of the Federation has not explained the reasons for the urgent procedure, which has prevented broader discussion, which should have been necessary considering the importance of the project and the possible consequences of its implementation in the proposed manner.

Finally, there are justified dilemmas regarding the compliance of this Law with existing constitutional and legal solutions, as well as with the obligations arising from the harmonization of BiH regulations with EU regulations.

In view of all of the above, Transparency International BiH calls on the Parliament and the Government of FBiH to organize a public debate on this law so that the public can gain insight into all aspects of these amendments, and that through an argumentative discussion, all dilemmas are resolved and contributions are made to the adoption of an optimal solution for the implementation of such an important project.