BANJA LUKA (Bosnia and Herzegovina), January 5 (SeeNews) – Foreign direct investments in Bosnia and Herzegovina should vary between 880 million marka ($484.9 million/449.9 million euro) and 930 million marka in 2016 with a large portion of these funds expected to be absorbed by the electricity, tourism and transport sectors, local media reported on Tuesday.
This year will see a continuation of investments in the power sector, including the completion of thermal power plant Stanari and the 5 MW hydro power plant Ulog, but funds are also expected to be directed towards the construction of several motorway sections, news daily Vecernji List reported, citing a research paper drafted by Bosnia's directorate for economic planning, DEP.
Bosnia can also expect the commencement of tourism projects, including the 4.5 billion marka Buroj Ozone resort in the municipality of Trnovo, while the scope of investments may rise if the planned construction of thermal power plant Uljevik 3 is realised this year, DEP noted.
DEP, a permanent body within the Council of Ministers, said earlier that it sees the country's economic activity accelerating in 2016 on the back of internal reforms, with growth projected to reach 3.1%.
A gradual increase of employment rates and wages is also projected for the period 2016-2018, supported by growth in production and exports, the growth of capital inflows from abroad and foreign direct investments, DEP added.
FDI in Bosnia fell 55% to 218.9 million marka in the first nine months of 2015. In 2014, FDI in Bosnia totaled 739.5 million marka, up 66.2% from a year earlier, figures issued by the central bank showed.
(1 euro=1.95583 Bosnian marka)