On 28 January, 
representatives of the European Commission and Bosnia and Herzegovina 
underlined the high importance of the integration of Bosnia and 
Herzegovina in the European energy market.
				Deputy Director General for Energy of the European Commission, 
Fabrizio Barbaso, Minister of Foreign Trade and Economic Relations of 
Bosnia and Herzegovina, Boris Tucic, and the two Prime Ministers, of the
 Federation of Bosnia and Herzegovina, Nermin Niksic, and of Republika 
Srpska, Zeljka Cvijanovic, discussed energy related matters of relevance
 for the EU integration of Bosnia and Herzegovina, a press release read.
				They agreed to further strengthen their efforts to reach this 
objective, not the least in view of the large potential of Bosnia and 
Herzegovina in this field, in particular with regard to the generation 
of electricity.
				The representatives of the European Commission reminded that Bosnia 
and Herzegovina, by signing the Energy Community Treaty, committed 
itself to ensure the security of energy supply, in line with Directive 
2005/89. The representatives of Bosnia and Herzegovina including the two
 Entities confirmed that a well functioning countrywide operating 
electricity transmission company is one of the cornerstones to guarantee
 the security of supply with electricity of the entire Bosnia and 
Herzegovina.
				The representatives of the European Commission welcomed substantial 
progress reached in making the company functioning, in particular the 
ongoing setting up of the management and the finalisation of audited 
financial plans, and that there is now a comprehensive agreement of the 
Shareholders to make TRANSCO fully functioning.
				The Prime Ministers of both Entities and the Minister of Foreign 
Trade and Economic Relations commit themselves - within the framework of
 their competences - to contribute to the operational safety, 
functionality and viability of TRANSCO. The long-term ability of the 
transmission network of TRANSCO to meet reasonable demand shall be 
ensured. The Prime Ministers of both Entities agreed on the following: 
The outstanding tasks of the setup of the (full) new management and the 
approval of the 2012 financial report will be completed by 28 February 
2014. No more than BAM 100 million accumulated revenues are distributed 
to the two shareholders under the current financial exercise. The 
distribution of any further accumulated revenues will not take place 
before the 10 year transmission network development plan has been 
adopted by the Shareholders’ General Assembly and approved by the 
Regulatory Authority (SERC).
				The Prime Ministers of both Entities agreed that experts of the 
Energy Community Secretariat technically support TRANSCO in the 
finalisation of the mid-term investment plan and the 10 year 
transmission network development plan to ensure Bosnia and Herzegovina’s
 compliance with the Energy Community Treaty. These investment plans 
will be submitted to the Secretariat before 10 February 2014. The 
Secretariat will issue the experts’ assessment by the end of February 
2014.
				The representatives of the European Commission informed that the EU 
funded technical assistance project for the alignment of the legislation
 on electricity with EU requirements has been completed at the end of 
December. The EU Delegation will make sure that the final report is sent
 to the respective stakeholders in Bosnia and Herzegovina. With the 
adoption of the required legislation before 2015, Bosnia and Herzegovina
 would meet its current obligations in the field of electricity under 
the Energy Community Treaty.
				With regard to gas, the Minister of Foreign Trade and Economic 
Relations will call for a meeting with all relevant authorities within 
the next two weeks with a view to coordinating the next steps in order 
for Bosnia and Herzegovina to comply with Ministerial Council Decision 
D/2013/04/MC-EnC.
				The European Commission took note of the ongoing negotiations on an 
Intergovernmental Agreement (IGA) of Bosnia and Herzegovina with the 
Russian Federation on the South Stream pipeline. In line with the letter
 of the Secretariat of the Energy Community dated 16 January, the 
Commission highlighted the need for the final IGA to be in compliance 
with the legal framework of the Energy Community Treaty, in particular 
with regard to the principle of third party access and unbundling 
between transmission system operation on the one hand, and gas 
production and supply, on the other.