General Electric will sign an investment deal worth at least €400 million ($554.3 million) in the Serb half of Bosnia later this month, the region’s prime minister said in an interview on Friday.
“We have received a confirmation that General Electric will sign the deal on October 23,” Milorad Dodik, prime minister of Bosnia’s Serb Republic, told Reuters. “€300 million will be in the energy sector, and €100 million in the health sector.”
After the Bosnia war of 1992-95, a peace agreement split the country into a mostly Serb half and a Muslim-Croat half under a federal government. Dodik has sought to make the Serb Republic the greater lure for foreign investment with lower taxes and streamlined regulation, although some diplomats are wary about rhetoric hinting the region may want to secede. “The Republika Srpska is one prosperous place for investment. We expect to have far more interest in the future from other investors,” Dodik said.
The Serb Republic is also in talks with Germany’s RWE on future hydro-electric energy projects, Dodik said. The prime minister said the region would not privatize its five existing hydro power stations and two thermal plants but would seek investment in new projects. (Reuters)