Page 18 - DMA Bosnia & Herzegovina Report 2013

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16
Investing In Bosnia & Herzegovina
2013
E
nergy and
M
inerals
in
B
osnia and
H
erzegovina
Energy and Minerals
by Brian Naughton
B
osnia and Herzegovina’s
(BiH) extractive industries
– specifically its energy and
metal production industries
– are amongst the country’s best
performing sectors. As with other sectors
such as agriculture, full-scale development
has been somewhat hindered by legacy
issues relating to BiH’s pre-independence
history as par t of the former Socialist
Federal Republic of Yugoslavia, coupled to
the negative impacts of the civil war and
the subsequent complexities of the post-
war political and administrative system.
But with ongoing suppor t (both financial
and technical) from the international
development community – and a keen eye
on the goal of accession to the European
Union – the country is beginning to make
some impor tant breakthroughs, especially
those relating to effor ts to modernise
the legal and regulatory environments
that are the precursor to both long term,
sustainable socio-economic development
and to attracting greater levels of foreign
direct investment (FDI).
The Energy
Sector
Overview
The energy sector in BiH is widely
considered to be its single most
impor tant long-term economic asset.
The country has abundant natural water
resources for hydropower and is the only
net expor ter of electricity in theWestern
Balkans. While being one of the most
impor tant economic drivers, the energy
sector in BiH still offers huge potential
oppor tunities for fur ther development
and investment. The country is endowed
with significant and diverse indigenous
natural energy resources that are still
untapped or only par tially exploited.
These include:
Brown coal and lignite, with estimated
reserves of six billion tonnes
Par tially exploited hydro potential is
estimated at over 6,000 Megawatts
Significant wind energy potential,
estimated at 2,000 Megawatts
Raw material resources for bio-mass
energy, including approximately 1.5
million m3 of forest
Geo-thermal and solar energy are both
viable but have not been sufficiently
explored and exploited
Oil and gas – preliminary research
surveys have indicated the presence
of promising deposits at a number of
sites (off-balance sheet reserves are
estimated at 50 million tonnes of oil).
According to a paper published by an
EU-funded policy resource centre dealing
with the coordination of research into
policies in the Western Balkan countries
(WBC-INCO.NET):
“BiH is the only country in the region with
a positive balance of electricity exports, and
the eighth country in Europe in terms of