09/12/2008 PIC SB Ambassadors

Statement by the Ambassadors of the Peace Implementation Council’s Steering Board

The Ambassadors of the Peace Implementation Council’s Steering Board treat as extremely serious the conclusion adopted yesterday by the RS Government to begin the process of revoking approval for the Law on Electricity Transmission, Regulator and System Operator in BiH, in the part pertaining to the establishment of the Electricity Transmission Company in BiH, and cancelling the Agreement on Transmission Company and Independent System Operator between the entity prime ministers in BiH.

The Ambassadors remind the RS Government of the clear position set out by the PIC Steering Board in its Declaration of 31 October 2007 regarding possible unilateral action of this nature by the entities, when it noted that “The PIC Steering Board also re-emphasises its concern regarding suggestions that certain reforms could be reversed unilaterally by entity decisions retrieving competencies previously transferred to the state. An entity cannot withdraw unilaterally from a previously agreed reform.”

The PIC Steering Board Ambassadors expect the RS Government to revoke its conclusion and continue to work within the established institutions and laws of Bosnia and Herzegovina, in this case the Electricity Transmission Company in BiH and to continue to work in the spirit of compromise to improve the functionality of these institutions.

Any move to implement this conclusion by the RS authorities would be addressed as set out in the October 2007 PIC Steering Board Declaration.