Bosnia Entities Split Power Company Profits

The two shareholders in Bosnia's power distribution company, Elektroprenos, which are the country's two entities on March 31 agreed to divide up the net profit of the company - some 50 million euro.

The Federation of Bosnia and Herzegovina will get 58 per cent of the sum while the other entity, Republika Srpska, will get 42 per cent.

Elektroprenos, also known as Transco, is 59 per cent owned by the Federation and 41 per cent by Republika Srpska. 

The two entities will put the cash directly into their respective budgets.

“After almost eight years, after today's session, Elektroprenos BiH is a state company that will start functioning in its full capacity within its legally proscribed jurisdictions,” the Federation entity Prime Minister Nermin Niksic said on Monday.

By law, the revenue of the company may only be distributed amongst its two shareholders after a period of 10 years, which expires in 2016. Any profit generated in the meantime should be used to develop and renew the transmission system.

However, Bosnia's cash-strapped entities recently agreed with the EU to take out 100 million KM from the company, insisting that this will not endanger investment in and development of the transmission system.

The two prime ministers on Monday promised new investment in the company, repairing the system of electricity transmission in the country.

Around 100 million euro, which the company still has on its accounts, will be invested in the system alongside another 70 million euro that the company expects to raise in revenue over the next three years.

“As in Federation, part of revenue will be used in the Republika Srpska to pay off old debts, subsidies for agriculture and for export,”...

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