KS Government Adopts Special Program for GRAS Business Consolidation

(Patria) - The Government of Sarajevo Canton, at the proposal of the Ministry of Transport, today adopted a Special Program for the consolidation of KJKP GRAS's business with a business development plan for the company until 2030, which was developed in cooperation with the World Bank during 2025.

The Cantonal Public Utility Company GRAS has been facing serious consequences of decades of neglect of the public transport system for years. The problems that accumulated since the post-war period have left deep consequences on the functioning of the company and the quality of service for citizens.

Among the key causes of this situation were excessive post-war employment, the abolition of transport coupons in the period 2002-2004, when money began to be paid instead of transport coupons, and the application of the collective agreement from the 2006-2007 period.

An additional problem was that public transport prices had not been adjusted for years and were not adequately adapted to the real cost of public transport. This began to change from 2022 with price adjustments and the introduction of subsidies, paid by the Canton so that citizens do not pay the full ticket price.

Such circumstances led to serious consequences for the company's operations, which are still evident today.

There was a deterioration of infrastructure and rolling stock, loss of bus and minibus public transport lines, as well as a large number of employee lawsuits resulting in multi-million obligations.

In addition, GRAS began to face its first losses and deficits from the early 2000s, and in the following years, hundreds of millions in tax debt, account blockages due to employee lawsuits, and asset blockages by the Tax Administration. All of this further damaged the company's image and reduced its operational capacity.

- In 2019, we found an accumulated loss of approximately KM 330 million, while in 2024 it was reduced by approximately KM 66 million with a tendency for further reduction in the coming years.

Ninety million KM of budget funds were paid to employees who sued the company, and the number of these court cases is 2,969. These employees sued the company based on the collective agreement in the period from 2009-2016, and this came due for our Government.

Employees could not retire because their contributions were not paid for years from 2009 to 2016, and in the period from 2021-2025, approximately KM 10 million was allocated for employee retirement programs, and 407 employees retired under full conditions - said the Minister of Transport of Sarajevo Canton, Adnan Šteta.

Previously, employees waited up to three months for their salaries, often went on strike, stopped working, and citizens had no transport. Today, GRAS employees have regular salaries with all contributions paid, which represents a significant step forward compared to previous years when contributions were not paid in the period from 2009 to 2016. From 2012, the company stopped regularly settling VAT obligations.

Despite the inherited problems, the Government of Sarajevo Canton, through the Ministry of Transport of Sarajevo Canton, has launched capital projects in recent years, aiming to stabilize the public transport system and reform it.

To mitigate the consequences, significant funds were invested in the renovation and construction of infrastructure, as well as in repaying outstanding debts.

For the first time in 60 years, the tram line from Ilidža to Marijin Dvor was reconstructed. The old tram line did not meet any criteria, and tram transport would have been stopped if the renovation project had not been realized.

For the first time since its destruction in the war, the trolleybus network to Vogošća was restored, and today a trolleybus runs from Trg Austrije to Vogošća.

For the first time since the Olympics, the rolling stock has been renewed through the procurement of 50 new vehicles, 25 new trams, and 25 new trolleybuses. This summer, 10 new Solaris trolleybuses, as well as 15 new minibuses and 10 new buses, will be delivered to Sarajevo.

In recent years, citizens have benefited from new conveniences in addition to new vehicles and infrastructure, thanks to subsidies. Pupils, students, and pensioners with minimal pensions have free transport, and all other categories do not pay the full ticket price.

For the first time in history, Sarajevo has night transport that is free for all citizens. Previously, one needed two coupons for transport; today, one coupon is valid with both carriers. Railway lines to Hadžići and Ilijaš have also been integrated into the public transport of Sarajevo Canton, and coupons are also valid on the train.

The debt to the Tax Administration of the Federation of Bosnia and Herzegovina has been significantly reduced, creating prerequisites for signing a reprogramming agreement between GRAS and the Tax Administration.

- The causes led to consequences, and the consequences began to be remedied for the first time after almost more than 20 years since the first cause appeared. Vehicles were destroyed, infrastructure was destroyed, everything was ready to stop. We did not allow that.

The Government of Sarajevo Canton has been continuously working since 2019, both on saving the public transport system and on improving and enabling the unimpeded provision of public transport for all citizens - added Minister Šteta.

As in the previous period, the Ministry of Transport of Sarajevo Canton and the Government will continue to implement their activities based on the previous and the new Program, and the same is expected and required from the company, given that the Program defines measures implemented by GRAS and measures implemented by the Canton.

GRAS is expected to improve public transport processes by complying with all legal regulations. It is expected to undertake business reorganization, new more efficient work organization of all services, and to continuously monitor the work of each service.

In accordance with the Program, it is necessary to further improve the work of employees in sectors that are in direct or indirect communication with citizens, through compliance with legal procedures, work procedures, behavior, dress code, and communication with citizens while performing tasks.

KJKP GRAS is expected, in accordance with the Program, to strengthen all segments of the company, including management and organizational structures, and to settle financial obligations.

In the process of supporting the company and investing in public transport in Sarajevo Canton, from which the citizens of Sarajevo Canton will benefit the most, the Ministry of Transport and the Government of Sarajevo Canton will continue to implement development projects in the period, in accordance with the Program and all plans.

- In this regard, in the period from 2026-2030, it is planned to complete the construction of the tram line from Ilidža to Hrasnica, which represents the first expansion of the line since 1962, reconstruct the tram and trolleybus depots at existing locations, procure additional vehicles for all types of transport, as well as vehicles for maintaining public transport infrastructure.

In addition to all this, the plan is to build a tram line from Nedžarići via Dobrinja to the Airport, modernize the bus terminal in Ilidža, and build a traffic control center for adaptive traffic management.

The plan also includes the replacement and construction of public transport stops, as well as a new public transport tariff system. Electric buses will also run in Sarajevo for the first time, as a public procurement has recently been announced - concluded Šteta.

All these measures and activities represent part of a long-term recovery process of a completely neglected public transport system in Sarajevo Canton, the ultimate goal of which will be a quality and modern company that will provide citizens with a quality and the best possible service, announced the Service for Protocol and Press of the KS Government.