SARAJEVO (Bosnia and Herzegovina), October 21 (SeeNews) – Bosnia's Federation has called tenders for the sale of two office buildings and a liquid fuels terminal of majority state-owned steel mill Zeljezara Zenica for a combined starting price of 11.2 million marka ($6.2 million/5.7 million euro).
The privatisation agency of the Federation of Bosnia and Herzegovina is seeking at least 8.2 million marka for the two buildings and a further 3 million marka for the liquid fuels terminal in two separate offers, according to tender announcements published on the agency's website on Thursday.
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The buyer of the office buildings will be obliged to keep 17 steel mill employees for at least three years and to invest a further 500,000 marka over the next 24 months. The sale of the fuels terminal is conditioned on the retention of six workers and an additional investment of 200,000 marka over the next two years.
The deadline for the submission of bids in both tenders is November 4.
In September last year, the privatisation agency said it approved a programme for the privatisation of steel mill Zeljezara Zenica.
Zeljezara Zenica is based in Bosnia's fourth-largest city, Zenica. The manufacturing operations of the company were privatised in the late 1990s by a Kuwaiti investor and renamed to BH Steel. In 2004 the company was taken over by Lakshmi Mittal and become a part of the Arcelor Mittal group in 2006. The old steel mill operations that remained in government hands are currently highly indebted.
The Federation is one of the two autonomous entities that make up Bosnia and Herzegovina. The other one is the Serb Republic.
(1 euro= 1.95583 marka)