TI BiH warns: Appointment of investor through amendments to the Southern Interconnection Law sets a dangerous precedent

Banja Luka, 30. March 2026 year – Transparency International in BiH warns that amendments to the Law on the Southern Interconnection of FBiH, which directly define which investor will implement the project, represent a dangerous precedent and as such carry the risk of seriously undermining the public interest.

The Draft Law on Amendments to the Law on the Gas Pipeline “Southern Interconnection Bosnia and Herzegovina and the Republic of Croatia“, which the Government of the Federation of BiH adopted on March 25 and submitted for adoption to the Parliament of FBiH under urgent procedure, undermines not only transparency but also eliminates any possibility of competition. The content itself raises numerous questions and indicates multiple risks that may lead to the endangerment of responsible governance and compromising the public interest by favoring particular interests.

Considering the importance of this project for the entire economy and energy independence of BiH, TI BiH emphasizes that no adequate analysis has been provided nor a rational basis for the radical change in approach to the project’s implementation compared to the Law that was adopted only one year earlier.

Specifically, the proposed amendments appoint a private investor as partner and project leader directly in the law itself, which represents a dangerous precedent that raises justified suspicion that this is a so-called tailor-made legal solution, i.e., legal provisions tailored to particular interests.

In addition to opening the risk of regulatory capture, which favors personal, commercial, or political interests of certain actors at the expense of BiH citizens, establishing such a practice in a country with one of the highest levels of corruption in Europe would lead to catastrophic consequences in the implementation of strategically important projects such as the “Southern Interconnection” gas pipeline.

The implications that such a project implementation model carries are something the entire BiH public should be informed about, as well as the professional credentials of the potential investor and the very reasons for changing the model, all of which the proposer has neglected in the proposed amendments to the Law.

Furthermore, the Government of the Federation has not explained the reasons for the urgent procedure, which has prevented broader discussion that should be necessary considering the importance of the project and the possible consequences of its implementation in the proposed manner.

Finally, there are justified concerns regarding the compliance of this Law with existing constitutional and legal solutions, as well as with obligations arising from the harmonization of BiH legislation with EU regulations.

In view of all the above, Transparency International BiH calls on the Parliament and Government of FBiH to organize a public debate on this law so that the public can gain insight into all aspects of these amendments, and that through reasoned discussion all concerns be addressed and contribute to the adoption of an optimal solution for the implementation of such an important project.

Press rls_30_03_2026