Final Report: Energy Investment Activity Project (EIA) - Book 1, Analysis and Recommendations for Removing Obstacles to Investment in the Energy Sector at the Level of BiH (BiH ENERGY PERMITTING)

Meeting BiH's international commitments, including the Treaty establishing Energy Community, requires a transparent and efficient permitting process for energy infrastructure development. As a party to the Treaty, BiH is obligated to adopt parts of the acquis, including European Union directives and regulations, such as Regulation (EU) 347/2013 on guidelines for trans-European energy infrastructure. The construction of energy infrastructure in BiH is a complex process due to the country's constitutional organization, with responsibility for issuing permits resting with various levels of government, including municipalities, cantons, entities, and BiH. This has led to a need for a more organized and simpler procedure, as well as harmonization of separate procedures within the authorization process. Investors and responsible institutions have emphasized the importance of a streamlined process to facilitate investment in the energy sector. The Energy Investment Activity Project (EIA) aims to address these challenges by providing recommendations for removing obstacles to investment in the energy sector at the level of BiH. The project focuses on key areas, including laws and procedures, concessions, environmental protection, and public interest. The EIA project team has conducted a thorough analysis of the current legal framework and has identified areas for improvement. One of the key recommendations is the need to assign a clear definition to the "public (general) interest" status at the level of BiH. This would help to streamline the permitting process and reduce uncertainty for investors. Additionally, the EIA project team recommends the adoption of European Union directives and regulations, such as the RES Directive, to promote the use of energy from renewable sources. The EIA project also emphasizes the importance of inter-entity and inter-state coordination and cooperation in the authorization process. This would help to ensure that the permitting process is transparent, efficient, and consistent across all levels of government. The project team has identified areas for improvement and has provided recommendations for the development of a more streamlined and efficient permitting process. The EIA project's recommendations aim to support the development of a more attractive investment environment in the energy sector in BiH. By addressing the challenges and obstacles to investment, the project seeks to promote the development of energy infrastructure and support the country's international commitments. The project's findings and recommendations are intended to inform policy and decision-making at the national and local levels, ultimately contributing to the development of a more efficient and effective permitting process in BiH.