Energy Community initiates procedure against B&H due to guarantee for credit for construction of Block 7

The Secretariat of the Energy Community has announced that it is officially initiating a procedure against B&H for the resolving of the dispute concerning the planned guarantee of the Federation of B&H for the credit of EUR 614 million from the Chinese Exim Bank for the construction of Block 7 at the TPP Tuzla.

With the initiation of this procedure, the Secretariat gives an opportunity to B&H to react to the allegations about the failure to comply with the Energy Community law within two months.

This procedure could potentially cause a delay in the process of accession of B&H to the EU, as well as a temporary halt in the financing from EU banks.

The procedure follows four warnings sent by the Secretariat to the B&H authorities. The warnings pointed out that, under the EU acquis, which B&H is obliged to comply with, the proposed guarantee is tantamount to illegal state aid.

If B&H fails to address this issue, the case will be forwarded to the highest decision-making authority of the Energy Community, the Ministerial Council.

Energy Community

Exim Bank

TPP Tuzla

Block 7 TPP Tuzla

construction of Block 7

Energy Community law