SARAJEVO, July 30 (Xinhua) -- The Council of Ministers of Bosnia and Herzegovina (BiH) has approved the international agreement on the construction of the BiH-Croatia South Gas Interconnection project, paving the way for the project to be submitted to the country's tripartite Presidency for further ratification.
The agreement, initially signed in late April by Borjana Kristo, the chairwoman of the Council of Ministers of BiH, and Croatian Prime Minister Andrej Plenkovic, marks a major step forward in regional energy cooperation.
The decision comes amid rising energy costs for BiH. Starting in the third quarter of this year, Russian natural gas supplier Gazprom increased its prices for BiH buyer by 14.42 percent. Commenting on the situation, BiH Foreign Minister Elmedin Konakovic emphasized the urgency of diversification, stating that diversification is of vital importance to BiH, and alternative energy sources much needed.
The project, backed by international partners and seen as key to improve energy security and diversification, involves the construction of a pipeline of more than 200 km linking BiH to Croatia and the liquefied natural gas terminal on Krk island. The estimated cost exceeds 180 million euros (about 207 million U.S. dollars).
To move the ratification process forward, the BiH Presidency must first adopt an approval decision, followed by consent from the country's Parliamentary Assembly. Once parliamentary approval is secured, the chairman of the Presidency will be authorized to formally sign the agreement. ■