The state-level law on energy and gas, which the Ministry for Foreign Affairs and Economic Relations sent to procedure two years ago, needs to be adopted as soon as possible to prevent further detriment to the energy sector, minister Mirko Sarovic and Chief of the US Agency for International Development (USAID) Mission in Sarajevo Nancy J. Eslick agreed on Monday.

The State Law on Electric Power and Gas was fully harmonised with European standards, and the European Energy Community and the European Commission already gave their consent for the new law.

“We're wasting too much time and suffering too much damage while waiting for the entities (Bosnia's two semi-autonomous units) to harmonise it. The Republika Srpska Government recently gave a positive opinion but now we're waiting for the Federation which had given a negative opinion in 2017 and put on hold the whole process,” said Sarovic.

Besides sanctions that the Energy Community might impose, the country needs the new law because the old legislation from 2002 poses an obstacle to the development of the energy sector.

“Besides, we're losing significant funds intended for Bosnia and Herzegovina through various projects. I believe that Bosnia and Herzegovina is losing dozens million Euros by failing to adopt the legislation in the electric power sector,” he said.

The officials agreed that the USAID will continue actively providing support in the harmonisation of laws with entity governments in order to put the whole process back on the track, which would improve the competitiveness of that sector and meet the obligations towards the Energy Community.