The Federal government of Bosnia and Herzegovina is to liberalize its energy sector, said the Bosnian Minister for Energy on Wednesday.
The sector is a socialist reminder of former communist Yugoslavia, and its liberalization is a move that Minister of Energy, Mining and Industry of Federation of Bosnia and Herzegovina, Erdal Trhulj, describes as: "the most important economic reform of the last 50 years."
Speaking at a joint press conference with Turkey's Energy Minister Taner Yildiz, in Ankara, Trhulj said that the Bosnian Federal government plans to eliminate the barriers to entry for private energy companies into the electricity production and distribution in the country.
The Economy of the Federation of Bosnia and Herzegovina, one of the six former parts of the Socialist Federal Republic of Yugoslavia, is still heavily dependent on government institutions.
The southeastern European country first separated the production and distribution of energy, both of which was in the hands of public corporations in 2006, when it partially opened the sector to private companies in 2009.
The Bosnian minister said that the legislation effort has surpassed a critical threshold, but added that the main public corporations will not be privatized: "since they are very big and important for the national economy, for the time being."
He emphasized that Bosnia has tried to stabilize the energy prices by letting in private companies in the state dominated energy sector.
There will be five tenders for the projected construction of five hydroelectric plants, said the Bosnian minister.
"The plants, which produce 1,300 MW and more electricity, will be built by private companies, whereas 1,000 MW producing plants will be built by the state companies."
"The Turkish experience in the energy sector is very valuable for us and we would like Turkey to share its experience with us," said the Bosnian minister.
He welcomed the possible commitments of Turkish energy companies in his country.
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