February 20 (SeeNews) - Bosnian gas supplier BH-Gas said it has signed a contract with a consortium led by Croatian consultancy firm Dvocut-Ecro for the preparation of a feasibility study and an environment impact study for the 160 km South Gas Interconnector Bosnia - Croatia.
The cost of the project is $500,000 (463,000 euro), which will be financed by a USAID grant of the same amount, BH-Gas said in a statement on Wednesday.
The European Bank for Reconstruction and Development (EBRD) will manage how the USAID grant is being spent, BH-Gas noted, adding that the Dvocut-Ecro-led consortium was selected for the job in compliance with the lender's tender rules.
It has said earlier it hopes to see the new pipeline that will link Bosnia to the Croatian gas network built by 2023/2024.
The South Gas Interconnector project will help Bosnia diversify its gas supply sources and routes from its current dependence on Russian gas which it obtains via Serbia and Hungary.
The planned route of the interconnection runs from Zagvozd in southern Croatia to Posusje and Travnik in Bosnia, with a branch to Mostar.
($= 0.9267 euro)