Regional Broadband Infrastructure Development

Bosnia and Herzegovina - Croatia South Gas Interconnection

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Project Financing

WBIF Grant WB6-REG-ENE-08 € 400,000
EBRD Loan € 87,000,000
Additional TC grants Other Sources € 1,000,000
Estimated Own Contribution € 32,000,000
Total € 120,400,000
Total Grants € 400,000
Total Loans € 87,000,000

Project Description

Bosnia and Herzegovina started using natural gas in 1979. It was introduced to reduce air pollution in Sarajevo and to supply Alumina Plant Birac in Zvornik. Currently, Bosnia and Herzegovina has a total gas network of 243 km, with a cross-border entry point for gas in Sepak, near Zvornik. The actual supply is below the demand, particularly during the winter period, and the cross-border interconnector is close to the end of its technical lifetime (40 years old). Because of capacity constraints, it does not allow for the further development of the gas market in Bosnia and Herzegovina.

This project aims to provide an alternative gas supply route for Bosnia and Herzegovina, by interconnecting it to that of Croatia, as well as to increase the country's gas supply capacity. Specifically, it concerns the construction of a 236 km-long bidirectional gas pipeline from Split to Zagvozd and then to Posusje and Novi Travnik, with a branch to Mostar; out of the 236 km, 162 km will be in Bosnia and Herzegovina and 74 km in Croatia. The proposed pipeline will be connected to two existing supply routes: Hungary (Drávaszerdahely) - Croatia (Imotski); and Austria (Murfeld) - Slovenia (Rogatec) – Croatia (Imotski). It could also be connected to the Ionian-Adriatic Pipeline, once it becomes operational.  

The construction of the Bosnia and Herzegovina - Croatia interconnector is supported by both BH-Gas (Bosnia and Herzegovina) and Plinacro (Croatia). The two project promoters have agreed on pursuing the investment, as well as on transmission assets ownership, maintenance and investment duties, and operational activities, which will be divided between the two companies according to the physical location of the assets.

The project is now at the design stage. The feasibility study was completed by the Infrastructure Project Facility 2 in November 2013; the cost-benefit analysis has been recently reviewed by Connecta. In addition, but only for the section in Croatia, an Environmental Impact Study has been carried out, the concept design is in place, and a location permit has been obtained.

Links

Positive Study Conclusions for the Bosnia and Herzegovina - Croatia South Gas Interconnection

  • Countries: Bosnia and Herzegovina,Croatia
  • Code: PRJ-MULTI-ENE-005
  • Sector: Energy
  • Monitor IFI: EBRD
  • Status: Preparation
  • Beneficiary: Line Ministries of the Beneficiary Countries
Project financing split

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