06.10.2004 Mostar

OHR’s Statement at the International Agency’s Joint Press Conference in Mostar

Plugging BiH into Europe

The restructuring of BiH’s electricity sector, a complex, strategic process being undertaken with the support of the World Bank and the EBRD, USAID and other donors, will take a major step forward on Sunday when the electricity system is resynchronized.

Due to the war, two UCTE synchronous zones were created, with the border going through BiH. The reconnection, so-called resynchronization of the two UCTE zones after many years of preparation (which has included the rehabilitation of several high-voltage lines and substations in BiH) will reconnect the two zones back together creating the largest synchronous area in the world.

Synchronous interconnection means that individual systems are connected and run together, at the same frequency, and assist each other if a disturbance occurs in a system.

The reform of the electricity sector in Bosnia and Herzegovina involves separating (or unbundling) the generation, distribution and transmission functions currently handled by the Elekrtoprivredas and allocating these functions into the newly established organizations.  Separating integrated utilities into separate functions is in accordance with the European Union directives and has been implemented throughout the Western Europe. Unbundling promotes transparency, reduces cost, increases efficiency and attracts investment.