|Bosnia and Herzegovina (BiH)
Regulatory and Energy Assistance Project (REAP)
Sponsored by the U.S. Agency for International Development (USAID)/BiH, REAP’s objective is to assist Bosnia and Herzegovina (BiH) in fully integrating its energy sector into the regional and EU markets and to restructure its energy companies, prior to their eventual privatization. REAP activities have built upon the progress previously achieved through support by USAID and other donors in physically restoring the energy system after the Bosnian War of 1992-1995 and continuing the development of sector reforms designed to meet BiH’s economic growth and development needs. To achieve regional integration, BiH energy market grid operations have been developed to meet international standards.
REAP activities have involved assisting the three existing Regulatory Commissions to work cooperatively and to harmonize their outputs, providing a unified regulatory framework for electricity markets that ensures consistent and transparent tariff procedures for regulated functions and a harmonized approach regarding market development. The electricity market well on its way to being restructured to permit energy buyers and sellers to operate according to market principles, and REAP is deeply involved in collective work in the sector to remove obstacles to market opening and develop detailed market processes. As a part of this effort, REAP was instrumental in developing a legal and regulatory gap analysis and recommending changes in laws and operational rules to create an open electricity market, with the aim to ensure that customers and suppliers have the necessary regulatory and operational foundation to execute supply and trade transactions.
“In short, the Contractor maintained, during the whole project implementation, an excellent relationship with all concerned parties, within the Government of Bosnia and Herzegovina and the electricity sector as a whole, gaining trust and confidence, resulting in the development of strong momentum on the grass roots level in the reforms necessary for market opening.”
- (USAID/Bosnia, Interim CPAR, REAP, 5/8/13)
As the major technical assistance to BiH on energy sector activities, AEAI’s project team members monitor the Energy Community bodies’ activities and decisions, identify resulting BiH obligations and advise the State Ministry of Foreign Trade and Economic Relations (MOFTER) on their implementation. REAP also monitors and comments on various pieces of sector legislation and regulations.
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