SARAJEVO (Bosnia and Herzegovina), September 12 (SeeNews) – Bosnian monopoly BH Gas said on Wednesday it signed a memorandum of understanding with USAID that aims to eliminate obstacles to investment in the construction of gas infrastructure and contribute to the security of gas supply in Bosnia.
The MoU defines cooperation towards improving the process of obtaining the necessary infrastructure licences related to gas supply projects, and improving the monitoring procedures, BH Gas said in a statement.
"A stable and competitive energy sector is a prerequisite for economic growth in Bosnia and Herzegovina," Peter Duffy, head of the USAID mission in Bosnia, said.
Earlier this year, BH Gas said the US government is ready to finance a feasibility study, preliminary project and environmental impact study related to the construction of a vital gas pipeline linking Bosnia to Croatia.
USAID has already expressed willingness to finance the project via a grant.
The planned construction a gas pipeline named South Interconnection of Bosnia and Herzegovina and Croatia, along the Zagvozd - Posusje - Novi Travnik - Travnik route, would ensure the safety of natural gas supply to existing consumers in Bosnia's Federation entity and Bosnia as a whole.
The Federation is one of the two entities that form Bosnia and Herzegovina, the other is the Serb Republic.