Main Muslim Party to Vote Against Foreign Investment in Bosnian Power Plants

Text of report by Bosnian independent weekly Slobodna Bosna, on 24 January

[Unattributed report: "Fear of Silajdzic Getting Stronger"]

According to information obtained by Slobodna Bosna, it is most likely that the SDA’s [Party of Democratic Action] deputies in the B- H Federation Parliament will not support the government’s decision to build eight new power plants. The decision will be put to a vote on 30 January, but Slobodna Bosna’s sources said that the SDA top echelon had already made a negative decision on this issue. This means that the remaining parties in the ruling coalition (the two HDZs [B-H HDZ, HDZ 1990 - Croat Democratic Union] and the SB-H [Party for Bosnia-Hercegovina]) will not get the required majority even if both HDZs were to support the construction of new power plants, which is not at all certain.

According to our information, the SDA’s negative decision is primarily motivated by political reasons. This party is afraid that, with this project, the SB-H’s leader Haris Silajdzic would additionally strengthen and solidify his leading position within the disunited and divided Bosniak camp. Although this is a project that has received unanimous support from ministers in the B-H Federation Government, the wider public links it almost exclusively to the SB- H, its leader Silajdzic, and the lobbying groups gathered around him and his party.

Estimated value of the eight new hydro-and thermo-electric plants is around 2.7 billion euros, with an additional 750 million euros for the building of the support infrastructure. This is the biggest postwar investment project in Bosnia-Hercegovina, which should double the energy potential of the B-H Elektroprivreda [public power company] and the HZ HB [Croat Community of Herceg-Bosna] Elektroprivreda. According to the previously signed protocol, the money to build new power plants would come from foreign companies, which, together with the two B-H Federation elektroprivredas, would form a joint company with equal ownership shares. Foreign investors would recoup their investment by selling the electricity produced in the new plants, after which the two elektroprivredas would gain 100- per cent ownership of the plants. This model fully protects Bosnia- Hercegovina’s energy sovereignty, and this is what the opposition deputies in the B-H Federation Parliament in particular insisted on. They kept in mind the negative experience of the RS [Serb Republic] Government, which has put its energy sector almost entirely in the hands of foreigners.

In politics, however, decisions are made on the basis of perception, not facts.

Originally published by Slobodna Bosna, Sarajevo, in Bosnian/Croatian/Serbian 24 Jan 08.

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