September 3 (SeeNews) - Bosnia’s biggest power utility, Elektroprivreda BiH, said it hired on Thursday U.S. consultants A.T. Kearney to advise on its merger with seven local state-owned coal mines.
The government of Bosnia’s Muslim-Croat Federation, where the involved companies are based, approved in May the merger, which aims to create better conditions for the development of the coal mining firms and to secure regular coal supplies to Elektroprivreda BiH.
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Under the terms of the 900,000 euro ($1.3 million) advisory deal with A.T.Kearney, the consultant is required to draft a concept for the organisational structure of the future power and mining concern by the end of 2010, the utility said in a statement.
The consultant should complete by June 2012 the second phase of the task which covers guidelines for the operation of the concern and relevant deadlines.
In addition to Elektroprivreda BiH, the concern will comprise the Kreka, Djurdjevik, Kakanj, Breza, Zenica, Abid Lolic and Gracanica coal mines.
The Muslim-Croat Federation, which owns 90% of Elektroprivreda BiH and is the sole owner of the mines, is one of the two autonomous regions forming post-war Bosnia. The other is the Serb Republic.
Bosnia’s two regions have separate energy markets. The coal mines and coal-fired power plants in the Serb Republic already operate as joint venture companies.
($=0.6976 euro)