FIPA Activities

FIPA brought investor for the Mine and TPP Kamengrad (Sanski Most)

9/15/2017

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-The investment value is 1.020.000.000 BAM

-There is a high degree of consent between the investor and the project owner

The Director of the Foreign Investment Promotion Agency of Bosnia and Herzegovina (FIPA) Gordan Milinić received a delegation from Energy China Group, led by the Vice-President of the Group Yu Gang, a delegation of China Energy Engineering, represented by the President Dong Bin and the Deputy Director Zuo Zhong, as well as representatives of the Lager Posušje Company led by the Executive Director Dragan Stipić with associates, who owns the Project Mine and TPP Kamengrad.

This was the fourth meeting with the Chinese delegation at which it was discussed the mentioned project. Considering that there is a high degree of consent between the investor and the project owner on the investment realization, it was agreed that the technical team from China visit Kamengrad in the next ten days in order to negotiate technical details regarding the project realization. After this visit, it is expected signing of the final agreement on the investment realization.

The Director Milinić established contact with the mentioned company at the beginning of this year in order to realize the investment in the project of the Mine and Thermal Power Plant Kamengrad, power of 2 X 215 MW.

The Government of FBiH, at its 59th session in 2016, made a decision to classify the construction of the Thermal Power Plant in Sanski Most as a strategic project in the energy sector in Bosnia and Herzegovina. With an investment of 1.020.000.000 BAM, launching production in the Mine and the production of electricity in the TPP Kamengrad will be one of the largest investments in BiH.

The realization of this strategic project will greatly contribute to the economic development of the local community, canton, as well as Bosnia and Herzegovina, and will have a major impact on employment.

 

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Global Investment Promotion Best Practices 2012 of the World Bank has cited one example of support that FIPA provides to foreign investors who are running business in Bosnia and Herzegovina in order to contribute to increase the flow of foreign capital in the country.

The article said:  

„The Foreign Investment Promotion Agency (FIPA) of Bosnia and Herzegovina was an early convert to the idea of providing facilitation services to agribusiness investors as a way to maximize the positive impact of agriculture on the economy.

In 2007, for example, FIPA assisted a Dutch food processing company establish a US$1.6 million production facility to process unused milk ingredients into value-added products in Sarajevo to sell to markets in Eastern Europe and the Middle East.

As part of its aftercare program, FIPA assisted the company with its expansion plans. Among other things, the agency helped facilitate veterinary permissions, navigate various bureaucratic hurdles and played an important role in securing funding for the company’s expansion. It also helped develop a network of local suppliers and customers. As a result of these efforts, the Dutch investor developed stronger links with the Bosnian economy, thus increasing the positive spillover effects on the local economy.

Currently a new investment to establish a drying facility for milk powder is under way. This will further expand the processing facilities of unused milk ingredients. This additional planned investment is worth approximately US$2.8 million, thus nearly trebling the company’s original investment in the country“.

 

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