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Chinese, Turkish firms dominate construction projects in Bosnia and Herzegovina

01.04.2023

Chinese and Turkish companies have almost no competition among foreign companies that have construction jobs in Bosnia and Herzegovina BiH worth hundreds of millions of BAM, according to data and documents. Companies from other countries don't apply for 90 percent of these tenders.

The Republika Srpska RS Motorways traffic control center in Laktasi is a modern and well-organized building. One wall is covered with screens showing the current traffic situation. The section of the road between Doboj and Brcko will be shown when it is completed. The construction of the part of the future highway to Bijeljina and on to Belgrade started last year when the authorities of the entity announced the cooperation with the Chinese company.

The idea of connecting BiH and Serbia was supported a number of years ago by Turkish President Tayyip Erdogan, followed by meetings with local authorities.

The lack of transparency and lack of competition fuel doubts as to whether the deal will be made in the best interest of the citizens, despite the glamorous meetings at the highest level celebrating the future road that will strengthen economic cooperation and connect the two countries.

Chinese and Turkish firms won more than half of all the construction projects worth more than 50 million BAM in the last six years, according to the tenders that were analyzed. Of 23 projects, 14 of these countries received more than six billion BAM, which is more than 80 percent of the value of all large infrastructure projects.

In the last six years, 15 contracts were signed for the construction of highways in BiH. Half of them were signed with Chinese and Turkish companies and the other half with domestic construction companies. European companies signed up for a consortium with a domestic company, or they didn't at all.

None of the companies from Western Europe applied for the tender, worth about 800 million BAM, for the construction of the building, which will be the ninth longest road tunnel in Europe.

Mirko Sarovic, the former minister of foreign trade and economic relations, is also a national coordinator for cooperation with China, and there is a difference between Western European and Chinese companies. He explains that the European Union EU is BiH's main trading partner and has a large share in investments.

When they give us money, BiH needs to harmonize its legislation with the EU's legislation, and adds that the Chinese invest without setting conditions.

Sarovic stated that Chinese investors had to meet the standards of the EU and BiH, and that they had to set conditions.

The former minister states that his role is to open space for cooperation, but that it is immediate, and that the conclusion of contracts has always been left to other entities in BiH, Detektor reports.