Investments in BiH: The Chinese are slowly taking over

November 5, 2017 2:00 PM

Chinese companies are slowly taking over when it comes to the construction of the largest power potentials on the territory of BiH.

Instead of the existing ones – in TPP Tuzla should work only one block – Block 7. The value of this project amounts to 722 million EUR. Negotiations are completed. The creditor is Chinese Exim bank. Repayment period is 20 years. The approval of the Parliament of the FBiH is pending.

Block 7 should be constructed by Chinese company Gezhouba. BiH should be happy that one of the world’s leading economic forces expressed interest in, among others, this project as well, stated Zlatko Lagumdzija.

Chinese company Dongfang will construct Block 1 – TPP Banovici. The value of the project amounts to around 305 million EUR. Around 85 % of the loan came from the consortium of Chinese banks. Although Block 7 is a priority and crucial for the stability of the energy sector according to the relevant authorities – the Parliament of FBiH discussed Banovici and issued a consent for issuing an energy permission for the construction.

After the recently held Summit in China – One Belt, One Road – which was attended by representatives of BiH as well, many people believe that this is a unique opportunity for BiH to use potentials that China can offer.

“Our Minister of Communications Ismir Jusko said that there are interested Chinese investors for the construction of highways at Corridor 5C. There is an interest of course, but if we do not provide the excise taxes as the support for loan repayment and guarantees in the other sense for that kind of projects, they will not be realized, said Anto Domazet, the Professor at the Faculty of Economics in Sarajevo.

“We are proposing a model of partnership between the PR China and BiH, where through concession or other partnership will be enabled for Luka Ploce in Croatia as well as the railway corridor that goes through BiH to Hungary, to become another lifeblood,” said Amel Kovacevic, the former Ambassador of BiH to China.

After TPP Stanari, Chinese capital could be found in the hydroelectric power plants of Buk Bijela and Dabar as well, according to negotiations of the authorities in the RS.

(Source: N1)

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