LOCAL PRESS

 

Brnabic: Serbia dedicated to integrated, stable region (Tanjug/RTS)

 

Serbian Prime Minister Ana Brnabic said today that Serbia remains committed to an integrated and stable region, but that it is not fair to insist on signing other agreements when Pristina does not respect some of the basic regional agreements. After meeting with European Commissioner for Neighborhood Policy and Enlargement Negotiations Johannes Hahn, Brnabic said that the main topics were the European path of Serbia and what the state does in terms of reforms and regional integration and cooperation, that is, everything that is within the framework of the Berlin process. When it comes to regional cooperation, she said that they also discussed the regional roaming agreement, which is important for citizens and the economy. We have a certain amount of reserve to a regional agreement that comes at a time when Pristina continues to insist on violating the CEFTA agreement, 100 percent taxes, Brnabic said and thanked Hahn and everyone from the European Commission for unambiguously calling Pristina to withdraw this decision on fees. She noted that unfortunately Pristina still insists on taxes that are a boundary to all other regional initiatives. Minister of European Integration Jadranka Joksimovic and President Aleksandar Vucic and I reiterated that Serbia is committed to regional cooperation. Our position is that there is no regional security, economic prosperity for any country of the region without regional cohesion and stability, she pointed out, adding that for this reason, we are considering ways in which Serbia can sign this agreement. According to Brnabic, it is not fair that there is further insistence on signing regional agreements when some of the basic regional agreements are not respected by Pristina. Brnabic added that Serbia remains committed to a region that is strong, integrated and that offers all citizens the possibility of a different perspective in the future. She stated that they mostly discussed the reforms in the field of the rule of law, and not that much reforms in the field of economy, where structural reforms continue and go quite well, both in the area of ​​public administration, where Serbia has a sectoral budget support of 80 million Euros from the EU. She explained that reforms in the field of rule of law are the most complex, and that the rule of law is one of the areas where most effort is being invested. We also touched on the media strategy and praised the way in which we have completed the Draft Media Strategy within a broad working group, and completed the public debate and the process of receiving comments. We received over 250 comments on the Draft Media Strategy, which we are now looking at to fit into the final draft, said Brnabic, adding that she hopes that the final draft will be completed by the end of April at the Serbian government session with comments from the European Commission. She also stated that they also discussed Constitutional changes and expressed the expectation that constitutional amendments will be on the agenda during the spring session of the Serbian parliament. She announced that the International Civil Society Week will be held in Belgrade on 8 April and that the Serbian capital will host the digital summit of the Western Balkans on 4 April. Brnabic thanked the EU and the Austrian Development Agency for their support for the reconstruction of the Golubac fortress.

 

Hahn extremely sorry about Kosovo dialogue deadlock (Beta/B92)

 

EU Commissioner Johannes Hahn says the deadlock in the Belgrade-Pristina dialogue is not a reason to halt the process of EU integration. “I am extremely sorry that the dialogue has been stopped, that is not good. There is no reason and it would be a mistake to stop everything just because the dialogue is in a deadlock,” Hahn told a joint news conference with Serbian Prime Minister Ana Brnabic. Hahn said that preparations are under way to open another chapter in Serbia’s accession negotiations with the EU, and that Minister for European Integration of Serbia Jadranka Joksimovic and her team are working on this daily. “Minister Joksimovic is making maximum efforts to push the administration and make progress so that everything can be finished at a certain point,” he said. Hahn added that the upcoming elections for the European Parliament do not have a big influence on the process of Serbia’s EU integration, because it is being conducted at the administrative level.

 

Hahn insists on progress on democracy in meeting with Vucic (FoNet)

 

European Commissioner Johannes Hahn insisted on progress in the fields of democracy and rule of law for the sake of society and Serbia’s movement on the European path, the Serbian President’s cabinet said in a press release following Hahn’s meeting with Aleksandar Vucic.

The press release quoted President Vucic as saying that Serbia respects the highest democratic principles and will behave in line with the behavior of Germany, France and other European Union member states on key issues in rule of law, the police and judiciary. Vucic and Hahn also discussed Serbia’s European integration, the situation in the region and problems in the Belgrade-Pristina dialogue, it said.

 

Germany to be more involved in Kosovo negotiations (Beta)

 

Germany is becoming more involved in the negotiations on Kosovo and is requesting that the EU appoint a powerful envoy with powerful authority in the fall, Beta learned from well-informed sources in Brussels. Berlin is decisively against the changing of borders but would be in favor of a solution where the north of Kosovo would have broad authority and Kosovska Mitrovica, for example, a status of free city, like Brcko in Bosnia and Herzegovina. Within the lasting agreement, according to Germany's stance, the north of Kosovo would have greater authority than envisaged in the structure of the Community of Serb Municipalities, but within the Constitution of Kosovo. In Berlin, but also in Paris, it is believed that the current EU mediator in the dialogue, Federica Mogherini, and her team, have lost the impulse and had no strength, nor new ideas for drawing Belgrade and, especially, Pristina, to the talks in good faith. This particularly refers to the EU's powerlessness to force the retraction of Pristina's decision to impose 100-percent import fees on goods from Serbia, and on the forming of the Kosovo army.

 

Ischinger: We are light years far away from a solution for Kosovo (Politika)

 

German expert for the Balkans Wolfgang Ischinger, the creator of the plan on the solution to the Kosovo problem after the model of “two Germanies” in 2007, told Politika that a solution for Kosovo is not even close. As he said, he would be the first one to welcome, if there is a plan that is widely supported in the Serbian society and parliament, as well as equally widely supported in Kosovo. “We are presently miles, not to say light years, away from such assumptions and conditions and I can only strongly welcome the fact that President Vucic, as he had told me, is investing all his energy in searching for possibilities for the resolution of this issue,” said Ischinger. Ischinger, who has been chairing the largest world forum where challenges of the modern world are examined – the Munich Security Conference, is visiting Belgrade again over his speech at the international conference “The Balkan Dialogues” and had a working lunch with Serbian President Aleksandar Vucic. The hardest problem in regulating relations between Belgrade and Pristina is international recognition of one and the other entity, says Ischinger, recalling that the so-called Ischinger plan was the subject for concluding an agreement between Belgrade and Pristina without mutual international recognition. “Not much has changed over the past ten years, the problem of international recognition is still enormous,” notes Ischinger.

According to him, it would be worth thinking about whether certain elements from the so-called Ischinger plan in 2007 could be useful,” opines Ischinger. “If somebody has a better plan, it should be taken. However, if there is not one, then perhaps some elements from the 2007 plan could be useful,” says Ischinger. If an agreement could be reached between Belgrade and Pristina on the change of borders and if both governments and parliaments agree, then there is nothing in principle, from the point of view of international law, that speaks against such a solution, concluded Ischinger.

 

Verbal confrontation of opposition and ministers in front of parliament building (Beta)

 

The opposition MPs boycotting the parliament protested in front of the Serbian parliament building on March 28, carrying photos of ministers who are said to be involved in corruption

dealings. Several opposition parliament members, headed by the leader of the Dveri movement, Bosko Obradovic, waited for the government ministers who were coming to the parliament to answer MPs' questions. On the other side, MPs from the ruling Serbian Progressive Party rallied in front of the parliament to support the ministers. They entered a verbal confrontation and the situation was on the verge of incident. Several Progressive Party MPs invited the opposition

to the session. They also asked them where their leader and financier, Dragan Djilas, was, referring to his stay in the U.S.

 

SRS joins opposition in boycott of ministers in parliament (Beta)

 

Deputies of the Serbian Radical Party (SRS) did not attend the Thursday session of the Serbian parliament when the prime minister and her government answered questions from the MPs.

Deputy Aleksandar Seselj said the Radicals did not wish to participate in the simulation of parliamentarianism. The majority of other opposition parties also boycotted the session.

Seselj referred to the MP questions session as the congress of the Progressives, because it was

attended only by MPs from the ruling Serbian Progressive Party.

 

REGIONAL PRESS

 

Members of B&H Presidency: Grant B&H candidate status as soon as possible (Srna)

 

Members of the Bosnia and Herzegovina (B&H) Presidency voiced hope in a meeting with Commissioner for European Neighborhood Policy and Enlargement Negotiations, Johannes Hahn, that once the European Commission submits its Opinion, EU Member States will make an affirmative decision about Bosnia and Herzegovina’s path and grant the country candidate status as soon as possible. During the meeting between Presidency Chairman Milorad Dodik and members Zeljko Komsic and Sefik Dzaferovic with Hahn in Sarajevo on Thursday, the topic of discussion was the political state of affairs in the country, while emphasis was put on the formation of all levels of authorities in B&H, which could give an extra boost to the country’s European path, reports the Presidency.  Hahn encouraged the Presidency members to keep cooperating and working hard to implement the previously harmonized reform processes. He welcomed the Presidency’s approval for entering the Agreement on lowering roaming prices in public mobile communications networks in the Western Balkans. Another topic of the meeting was a delivery of the European Commission Opinion regarding B&H’s preparedness for obtaining EU candidate status, while dedication and commitment was expressed to the fulfilment of requirements for the formation of the Opinion during the European Commission’s current term. The interlocutors have underlined that recommendations from the aquis will be a road map for reform processes in all areas significant for the country’s overall progress and development. In this context, members of the B&H Presidency voiced their commitment to the continuation of socio-economic reforms, greater struggle against corruption and creation of favorable conditions for investment and job generation. Members of the B&H Presidency voiced hope that once the European Commission submits the Opinion, EU Member States will make a positive decision about B&H’s further path and grant it candidate status as soon as possible.  They voiced pleasure with the intensity of high-level visits with EU officials, which they said proved a commitment to B&H’s European perspective.

 

Hahn: Opinion by end of May, provided authority is formed (Srna)

 

Johannes Hahn, European Commissioner for Enlargement and European Neighborhood Policy, stated on Thursday in Sarajevo that an opinion on merits of B&H application for EU membership could be announced by the end of May, provided the all levels of authorities are formed in B&H. He said that this issue is currently being worked on within the European Commission, but B&H requires formed authorities at all levels in order to continue working on all important issues. Hahn assessed that the opinion on the merits of B&H's application for EU membership is in a transitional phase, but that the phase in which all necessary reforms are undertaken is much more important. He emphasized the importance of working on the socioeconomic reform agenda, stating that it is necessary to create job opportunities through more attractive conditions for business operations for both foreign and local investors. Hahn believes that it is necessary to address the issue of tax burdens, solve the problem of skilled labor that is lacking in B&H, and the health sector issue. He said that both the EU and local stakeholders in B&H must work together on all these issues, and voiced hope that political entities in B&H would agree with these priorities.

 

Bosniaks plan they be the only constituent people and Serbs and Croats constructive (Srna)

 

SNSD leader Nikola Spiric warns that Sarajevo is trying to create a new paradigm in which the Bosniaks say they are the only constituent people and that the Serbs and Croats should be constructive peoples. “Hence, this means they are the only constituent people and the other two should be constructive peoples and that they should confirm the views of the constituent people,” Spiric told Srna. He fears that such a stance will bring Bosniaks further and further away from the success of B&H. “We are all either constituent or not. It is impossible to build a Constitution- and Dayton Peace Agreement-based B&H upon the paradigm that one people is constituent and the other two constructive,” says Spiric, who is a member of the Advisory Board of the House of Peoples of the B&H Parliamentary Assembly.  According to him, judging from the way processes at the State level are carried out, it seems that the chance of a quick formation of authorities is slimmer and slimmer.

 

RS will celebrate republic day despite pressures (Srna)

 

RS Prime Minister Radovan Viskovic said that RS will continue celebrating 9 January, RS Day, despite a ruling of the B&H Constitutional Court, and that the greater the pressure, the greater the celebration. “I would like to send a message to judges of the B&H Constitutional Court to start dealing with some other issues, in addition to the RS Day, since I think that this is the 5th time they are dealing with it. I must disappoint them because we will celebrate January 9 and find a way to respect a decision of the B&H Constitutional Court, no matter what it may be,” Viskovic told reporters. He says that judges must reject the appeal if they want to judge in keeping with the law. “I must disappoint them. We will find a way to celebrate January 9, regardless of everything,” Viskovic said and added that citizens should prepare for the celebration of January 9 next year. The B&H Constitutional Court is expected to hold a plenary session on Thursday to review a motion to assess the constitutionality of the Law on RS Day which was filed by some Bosniak and Croatian members of the previous RS Council of Peoples.

 

Pristina’s custom duties will not affect gross domestic product (Srna)

 

Minister of Foreign Trade and Economic Relations at the Council of Ministers in caretaking capacity, Mirko Sarovic, said Thursday that the decision made by provisional authorities in Pristina to increase custom tariffs for goods from B&H by 100 percent will in no way affect the GDP, as it is about a small economic exchange of BAM 140 million. "I am not of the opinion this is insignificant, but it will certainly not affect the year of 2018," Sarovic told reporters after the session of the Council of Ministers in caretaking capacity. He said that B&H’s foreign trade balance in 2018 was better than in 2017, because the export to import ratio was 62 percent, which is by one percent more compared to 2017. According to him, this suggests that some sectors have advanced, such as the automotive industry. The government of the self-declared Kosovo adopted in November last year a decision on introducing protective measures on the import of all products from Serbia and B&H.

 

Latvian President on visit to Croatia (HRT)

 

Croatian President Kolinda Grabar-Kitarovic and Latvian President Raimonds Vejonis said in Zagreb on Thursday that preserving EU and NATO unity are necessary for the stability of Europe and added that the upcoming European elections could determine the course in which relations on the continent will go. Topics of discussion included the economy, tourism, airline connections and the future of the European Union. Vejonis noted that it is in the interest of the business community in both countries to inform them of business opportunities and motivate them to strengthen cooperation. The two countries share the same stance on numerous issues including dedication to NATO and European Union membership. The Latvian president thanked Croatia for taking part in an EU battlegroup while both presidents also underlined the importance of European elections. “It is important to work on security issues during and before the Euro parliamentarian elections, because we see that sometimes some countries try to interfere in the election processes and of course we must be ready for such situations. Despite the differences in different EU countries we must be united and we must participate in elections and I think it is very important,” said Latvian President Vejonis. Vejonis offered the experience of his country in chairing the European Council and said, like Croatia, they will support the European perspective for Western Balkan countries as well as strengthening cooperation with Eastern partnership countries. Grabar-Kitarovic underlined the opportunities for economic cooperation within the three seas initiative. “In that sense we see the possibility for cooperation on concrete projects, firstly in the energy sector, for example the natural gas corridor between northern and southern Europe and the LNG terminal on the island of Krk, which would connect toward the north,” said President Grabar-Kitarovic.

 

Rivlin to Djukanovic: You have proved that any problem can be solved (CDM)

 

Relations between Montenegro and Israel are constantly being developed. The two states are open for further reinforcement of their bonds and deepening their cooperation. Our relations are a lot more than just relations between the two governments, they are relations with people, relations among business entities and everything that creates good mood when our citizens when they visit Montenegro and vice versa, said the President of Israel, Reuven Rivlin to Montenegrin president Milo Djukanovic, who is in his official visit to this state. “So far, these two states have done a lot. Israel recognizes great results and successes that Montenegro is achieving in the integration process. It looks forward to further promotion of cooperation in numerous areas. We truly believe that we can do so many things together”, pointed out the Israeli president.

Djukanovic expressed his satisfaction with his visit to Israel and with the continuous political dialogue they are engaged in. The foundation of this great cooperation is understanding and mutual trust. “A very significant contribution to this friendship is provided by the Jewish community in Montenegro. Montenegro, as an exemplary multi-ethnic democracy in the Balkans, is proud of its relations with the Jewish community and the history of antisemitism” said Djukanovic. Special attention was given to the segment of investments. Both presidents agreed that it is very important to keep working on the improvement of the contract basis for the cooperation. Israel is ready to spread its knowledge and experiences especially in the domain of investments. Montenegrin president invited Israeli president to visit Montenegro and he gladly accepted the invitation. “Israel learns a lot from Montenegro. You have proved that any problem can be solved” said the Israeli president. After the meeting at the presidential residence, Djukanovic visited Memorial center, Yad Vashem, where he laid a wreath in the memory of the victims of the Holocaust.

 

Trial ended, judgment on 9 May (RTCG)

 

With closing arguments of one of the accused, Milan Knezevic, the trial for the attempted terror on the parliamentary elections day in October 2016 ended, while the verdict will be announced on 9 May. Among other things, Knezevic said that he and DF officials were doing everything in accordance with the law in order to win the Democratic Party of Socialists (DPS) in the elections. He claims that he would do everything the same again because, as he says, he did not violate the law. He reiterated that the process was politically mounted. Knezevic also said that the verdict had already been written and that somebody thinks that it would "stop civil protests that have been shaking Montenegro for several weeks". He also stated that "no judgment should stop the civil protest". "And all Montenegrin citizens on Saturday and following Saturdays should overflow Podgorica streets. Not because of Milan Knezevic and Andrija Mandic, as we are innocent and free people, but because of the freedom of Montenegro," said Knezevic.

 

Xhaferi appeals for fair and regular elections and the citizens should exercise their voting right (Meta)

 

Parliament speaker Talat Xhaferi sent an appeal for fair and regular elections, to all citizens, political parties, and the presidential candidates before the start of the campaign at the forthcoming presidential elections, which will officially start on the 1st of April. He also said that it is in the country’s interest and that it is one of the conditions for the start of the EU accession negotiations. “Firstly, an appeal to all citizens, to use their right to come out at the polling stations, to use their right to vote and to contribute to a starting regularity of the process. I appeal to all political subjects that support the presidential candidates directly or indirectly and with their acts and statements not to cause heated ambiance during the prelection campaign, but to have an appropriate level of political culture in their mutual communication i.e. the communication among each other and with the citizens,” said Xhaferi at the regular briefing with the journalists. The parliamentary speaker sent a message to the presidential candidates to make these elections to be acceptable for everyone i.e. the campaign not to receive a negative connotation. When asked what will happen if a census is not reached in the second round of the elections, Xhaferi reminded that there is a procedure in accordance with the Constitution according to which the whole procedure is repeated and the president of the Parliament is becoming acting president until a new president is elected.

 

Dimitrov: Government and opposition to jointly work on EU integration (Republika)

 

Foreign Minister Nikola Dimitrov at parliament’s Q&A session on Thursday accepted an initiative by opposition lawmaker Panco Minov urging parliament to pass a resolution to uphold the country’s reform-oriented and integration processes. The experience of all the countries that have walked the path in front of us shows that the cooperation between the government and the opposition, the easier the process and in that sense, I see nothing disputable. On the contrary, the government will gladly accept this initiative with a declaration with which will show everyone that we are for European integration. From the last polls I have seen 86 percent of citizens support the road to the EU and it’s a rating that is bigger than all political parties together, said Dimitrov. He added that in that context, it is possible to make something concrete, that is, to jointly secure a two-thirds majority for the Law on Public Prosecutor’s Office, which also covers the future of the Special Public Prosecutor’s Office. “Our task is to do everything we can, to look a little broader, to think of state interests, to secure a two-thirds majority for this law because the chances are real, and the unpredictability, if we do not catch the train now, are also big, Dimitrov said. Regarding the opening of a new border crossing point to Greece, Dimitrov said that they will try to pass all the procedures and provide conditions for the agreement to be signed within the framework of the visit of the Greek Prime Minister Alexis Tsipras to our country.

 

Government and opposition fail to reach agreement on PPO law (Republika)

 

Government and the opposition have failed yet again to reach an agreement over the draft-law on the public prosecutor’s office, which is set to solve the status of the Special Prosecutor’s Office (SPO). Representatives of the government and the opposition, who participated in the meeting, said the talks continue and there is room for consultations.  Justice Minister Renata Deskoska-Trenevska hopes that a two-thirds majority will be secured for the law and that it will be passed before the elections. Later on, Talat Xhaferi announced that he will not allow a vote in Parliament on the Special Prosecutor’s Office until the presidential elections are over on 5 May. Xhaferi said that the talks on the controversial unit are being abused by the parties and that he will wait until the elections are over. “Let the parties discuss it the coming period and overcome their differences on the SPO,” said Xhaferi. His announcement comes as the European Union Embassy in Macedonia urged the parties to adopt the law proposed by the SDSM – DUI coalition, which would make the SPO a permanent part of the prosecutor’s service.  The decision of the European Council, which should discuss opening accession talks with Macedonia in July, could be influenced by the adoption of this law, the Embassy insists. “We have been closely following discussions between the government and main opposition party on the draft law. We urge all parliamentary political parties and distinguished members of the Sobranie to positively consider the adoption of the legislation. This will demonstrate to the citizens as well as to the international community the commitment to establishing accountability for all crime, especially high-level corruption and misuse of power, but also to strengthening the rule of law in the Republic of North Macedonia. It will also contribute to citizens’ desire for rule based and fair society which ultimately is at the heart of the EU enlargement process” the Embassy said in its statement. According to Xhaferi, the delay he announced will not affect the EU agenda, because the European Parliament elections will also delay the preparation of the progress report on Macedonia, leaving enough time to adopt the law after the elections. VMRO-DPMNE submitted 65 proposed amendments to the draft which is being proposed by SDSM. VMRO demands that the prosecutor is appointed by the opposition parties to ensure transparency and accountability of the Government, which was a key SDSM request only years ago. VMRO-DPMNE leader Hristijan Mickoski also cited a direct attempt by current special prosecutor Katica Janeva to blackmail him as the reason why the opposition can’t support the current SPO officials. During his recent TV debate with PM Zoran Zaev, Mickoski insisted that it is clear that the government wants to keep using the SPO as a tool to exert pressure on the opposition. On the other hand, Prime Minister Zoran Zaev, who owes his position to the dozens of criminal cases which the SPO initiated – almost exclusively against VMRO officials – wants to keep Katica Janeva in charge of the institution. For this purpose, Zaev announced that he may try to adopt the changes to the law without approval from the opposition, using the two – thirds majority he was able to put together for the renaming of the country. Nine opposition members of parliament, some of them charged by the SPO and others by the “regular” state prosecutor’s office, voted with Zaev to rename Macedonia into “North Macedonia” in exchange for pardons. In this line, SDSM representatives met with the smaller opposition ethnic Albanian parties, BESA and Alliance of Albanians. Both parties had their own requests to support the SPo law. Ziadin Sela from AA demanded that on top of the SPO, a special court is created to process charges of corruption in the high levels of the Government, while Bilal Kasami from BESA, who met Zaev, asked that the prosecutors are allowed to continue using the cache of illegally recorded wiretaps as evidence. Both parties implied that the DUI party, which is their chief political rival, wants to avoid prosecution of its officials for corruption and could undermine the SPO.

 

Protest's aim was not violence but awareness - SMI says (ADN)

 

The former Socialist Movement for Integration (SMI) MP, Klajda Gjosha, has commented on Thursday afternoon the protest which happened early in the day, marked by violence and tensions. According to Gjosha, the protest's aim was not to show violence but to raise awareness for citizens that the government should leave. "Citizens today are unrepresented, and this was the goal of today's protest, to attract as many citizens as possible. Protesters could have broken the police cordon for 5 minutes. But despite this measure, the citizens showed that they did not revolt with the police and institutions, but with the government" said Gjosha. She was expressed convinced that in terms of protests and popular pressure, Prime Minister Edi Rama will soon accept snap elections. Rama has commented on Thursday during his speech in the parliament, the situation created by the protest. According to him, despite all the actions that the opposition takes, local elections will be conducted within the deadline, with or without them. He was expressed belief that opposition MPs, will not enter the Parliament till 2021. He added that there will be no negotiations about snap elections because according to the Premier, Albanians decided to believe in Socialist Party (SP).

 

INTERNATIONAL MEDIA SOURCES

 

Georgian Consulate Opens in Serbia (Georgia Today, by Gabrielle Colchen, 29 March 2019)

 

The president of Serbia and Georgian speaker of Parliament, Irakli Kobakhidze, opened diplomatic representation of Georgia in Serbia. The Georgian consulate will enable to closer political, economic and cultural relations between the two countries. Mr. Kobakhidze stated: “We attach particular attention to development of bilateral relations. We share much in common and it is important to enhance our political relations. We also enjoy the greatest prospect for development of economic, cultural, education and science relations and naturally, opening of the diplomatic representation can play the significant role in this context”. During a meeting, the two parties also agreed on cooperation for opening of the diplomatic representation of Serbia in Georgia. Ultimately, the goal for Georgia is to convert the Consulate into an Embassy. The speaker of parliament commented: “I hope that ultimately, we will open the Embassy in Serbia. It is important deriving from the fact that Serbia is the priority country for us.”

 

China’s Loan for Bosnia Coal Plant Worries EU (BIRN, by Mladen Lakic, 28 March 2019)

 

Bosnia’s Bosniak-Croat Federation has turned to China for cash to secure its coal-fired energy production, but the EU and Bosnian environmentalists warn there will be consequences.

Racing to secure energy production beyond 2027, Bosnia’s mainly Bosniak and Croat Federation entity has agreed to guarantee a loan of more than 600 million euros from China to construct a new coal-fired power unit. But the project faces growing criticism at home and abroad. The Federation parliament approved the guarantee earlier this month, moving ahead with a project that will cost 870 million euros in total, making it the single largest investment in Bosnia since the 1992-95 war. But the European Union is far from happy, and nor are environmentalists in Bosnia. They say the plan does nothing to help clean up the heavily polluted air in the country.

On March 27, the EU Energy Community Secretariat, announced that it was opening a dispute settlement procedure on Bosnia’s planned guarantee for a 614 million euro loan from the China Exim bank to build the Tuzla 7 coal power plant. The Energy Community said it had sent an Opening Letter to Bosnia noting concerns about the public guarantee of the Exim Bank of China loan, adding that it had repeatedly voiced similar concerns in the past. On March 6, European Enlargement Commissioner Johannes Hahn said the deal raised serious questions about Bosnia’s “commitment to international treaties and European rules” under a treaty – the Energy Community Treaty – to bring the energy policies of eight aspiring member states into line with the EUs own. It also raised questions “about the choice of the energy technology as well as about a sound cost-benefit analysis in a responsible and transparent manner,” Hahn tweeted. He cautioned that issues such as environmental impact assessments, state aid and public procurement procedures would be looked at closely when the EU comes to assess Bosnia’s progress towards eventual accession. The EU delegation in Bosnia did not respond to a BIRN request for comment.

 

Growing Chinese presence

The Energy Community has said the state guarantee for the loan from China’s state-funded Export-Import Bank may constitute illegal state aid. The Federation government says it has little choice, faced with the need to shut down and replace the existing units at the Tuzla thermal power plant with a new 450 MW unit – Block 7 – by 2027. “Let me cite a Brussels speaker I heard once in Slovenia,” Federation Prime Minister Fadil Novalic told reporters on March 15. “He said that new coal thermal plants are not the best thing in the world, but much worse are old thermal plants and worse still is not having any electricity at all.” Currently, Bosnia has about 4,000 MW of installed power generation capacity. Three government-owned power utilities dominate the sector: “JP Elektroprivreda Bosne I Hercegovine – d.d.” (EPBiH) in Sarajevo, “MH Elektroprivreda Republike Srpske a.d.” (EPRS) in Trebinje, and “JP Elektroprivreda Hrvatske Zajednice Herceg Bosne d.d.” (EPHZHB) in Mostar. Coal-fired power plants account for about 60 per cent of total power generation, with hydropower plants providing the balance. In 2013, more than 95 per cent of generation capacity was owned by the three government-owned utilities. These companies, and the entities that own them, lack the funds to maintain, let alone expand, capacity, however. The EU, on the other hand, says Chinese loans and investments rarely meet the standards set by Europe and are plagued by a lack of transparency. Besides the Federation, Bosnia’s other entity, the mainly Serb Republika Srpska, has also turned to China for investment in its Gacko 2 thermal power plant. A number of projects involving Chinese loans and investments are expected to propel China to the top of Bosnia’s relatively short list of investors and creditors. “When it comes to loans like this one, the procedure should be completely transparent and based on studies,” said Banja Luka-based economic analyst Zoran Pavlovic. “Unfortunately, we now have a situation in which Bosnia is not meeting standards set by the EU treaty community, which may complicate our position later, while on the other side the country itself cannot find the money anywhere else,” he told BIRN.

 

Germans, Japanese dropped out

The construction contract for Block 7 has been signed, but elements such as the repayment period have yet to be defined with the Chinese bank. Bosnia wants to pay back the loan over 20 years, rather than 15. The Block 7 project dates to 2010, but Germany’s RWE and a Japanese consortium dropped out over concerns about profitability. Now, if the power plant fails to generate enough money to cover the Chinese loan repayments, Bosnia’s Federation will have to make up the difference from its own coffers. But without outside financing, Bosnia risks becoming an energy importer within the next decade. The country currently exports electricity.

“The consequences of this scenario would be devastating for the country even though at this point this might not be the best solution,” said Nenad Brkic, professor of economy at the University of Sarajevo. “We must have in mind the possible political background of any major investment, and all possible implications of this decision,” Brkic told BIRN.

 

New plant, old pollution problems

Besides the financial risks, there are concerns too about the project’s impact on Bosnia’s dire air quality. A March 2017 report by the World Health Organisation noted that Bosnia’s existing thermal power production does not comply with EU emission standards, that per capita emissions are the second highest in the region and the CO2 intensity of economic output is the highest in the region and six times that of the EU average. Tuzla, it said, has the second highest level of air pollution in Europe, while Bosnia ranks second in terms of mortality rates from air pollution. Environmentalists in Bosnia fear the new Tuzla unit will not meet EU pollution standards. “Newer technologies might lower the pollution, but not entirely,” said Denis Zisko, programme coordinator at the Tuzla-based Centre for Ecology and Energy. “For these kinds of projects to be cost-effective, power plants have to work for at least 40 or 50 years, so in this case, our citizens will be poisoned for decades to come.”