VZCZCXRO4269
RR RUEHIK
DE RUEHVJ #1298/01 3241536
ZNR UUUUU ZZH
R 201536Z NOV 09
FM AMEMBASSY SARAJEVO
TO RUEHC/SECSTATE WASHDC 1004
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 SARAJEVO 001298 
 
CODEL 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/SCE 
 
E.O. 12958: N/A 
TAGS: PREL SENV BK
SUBJECT: BOSNIA: CONGRESSMAN BAIRD REVIEWS ENVIRNMENTAL 
ISSUES AND POLITICAL SCENE 
 
SARAJEVO 00001298  001.2 OF 002 
 
 
Summary 
------- 
 
1.(SBU) Congressman Brian Baird (D-WA), member of the Science 
and Technology Committee ofthe U.S. House of 
Representatives, visited Sarajvo on November 13 to review 
energy and environmental issues in Bosnia and Herzegovina 
(BiH).  The visit included calls on the Federation Ministry 
of Energy and the state-level Ministry of Foreign Trade and 
Economic Relations, a stop at the city's defunct wastewater 
treatment plant, and lunch with two Members of the Federation 
House of Representatives.  Upon learning of Bosnia,s efforts 
to gain entry to the European Union,s visa liberalization 
regime, Congressman Baird undertook to organize congressional 
support for that objective.  In addition to the need to 
strengthen the Bosnian government,s ability to coordinate 
national policy on energy, environment, and resource 
management, the visit also highlighted the pressing need for 
restoration of wastewater treatment in Sarajevo.  End summary. 
 
Minister Heco Lays Out Energy Investment Plan 
--------------------------------------------- 
 
2.(SBU) Federation Minister for Energy, Mining and Industry 
Vahid Heco, 
a member of Haris Silajdzic,s Party for Bosnia and 
Herzegovina (SBiH), laid out an ambitious plan to attract 
foreign investors to eight power generation projects in the 
Federation, which he valued at $4 million.  Heco alluded to 
the fact that this "Strategic Partners" plan had been 
derailed, and 
suggested that irrational fear of foreign investment and 
jealousies 
of members of the ruling Party for Democratic Action (SDA) 
were the 
cause.  He asserted, however, that the country,s financial 
crisis 
was now reviving interest in the plan as a source of income 
for the 
government.  (Comment: Heco glossed over the fact that last 
year, the 
Federation Parliament had cancelled the original Strategic 
Partners plan, introduced in July 2007, over accusations of 
corruption and a 
non-transparent tender process.  At the time, estimates 
placed the value of the eight projects at $2.5 million, 
rather than the $4.0 million Heco is now citing.  End 
comment.) 
 
3.(SBU) Congressman Baird asked whether the Ministry was 
putting any resources into promoting energy efficiency.  Heco 
responded that as a net energy exporter, the Federation,s 
priority was to develop its coal and hydroelectric potential, 
leaving the Ministry little time or resources for energy 
efficiency. 
 
State Level Has Little Clout in Energy or Environment 
--------------------------------------------- -------- 
 
¶4. (SBU) In a discussion at the BiH Ministry of Foreign Trade 
and Economic Relations (MOFTER), Congressman Baird learned 
that most of the power and resources to conduct energy, 
environment, and resource policy lie with Federation Minister 
Heco and his counterpart in the Republika Srpska.  MOFTER 
Assistant Minister Reuf Hadzibegic, the highest-ranking 
state-level official with responsibility for these issues, 
professed to have little power over energy or environmental 
policy decisions of the entities, and displayed little 
knowledge of their activities.  Despite this, his senior 
advisor for international cooperation explained, a staff of 
just six MOFTER employees is responsible for implementing 
energy and environmental reforms -- as well as agricultural 
reforms -- to comply with pre-accession requirements under 
the EU-Bosnia Stabilization and Association Agreement. 
MOFTER often receives little cooperation from the entities, 
the advisor said, but cannot point a finger at them when 
meeting with the EU to justify the snail,s pace of progress. 
 
 
Pressing Need for Wastewater Treatment 
-------------------------------------- 
 
¶5.  (SBU) During a visit to Sarajevo's wastewater treatment 
plant, which was destroyed during the war and has remained 
nonfunctional ever since, Congressman Baird learned that no 
major metropolitan area in BiH has a functioning sewage 
treatment system.  In a public statement the Congressman 
expressed concern and surprise that Sarajevo lacked a water 
 
SARAJEVO 00001298  002.2 OF 002 
 
 
treatment plant and called on its citizens and politicians to 
"come together to solve common problems, such as energy, air 
pollution, and particularly water treatment."  Privately, he 
noted that the uncontrolled pollution of Sarajevo,s 
principal rivers presents a significant health threat to 
downstream neighbors who rely on them for their drinking 
supply.  In the subsequent meeting at MOFTER, Assistant 
Minister 
Hadzibegic said that Bosnia needs an estimated 30 million 
euros ($45 million) to renovate the plant, and that the World 
Bank has offered 10 million euros ($15 million) toward that 
end. 
 
Support Offered on Visa Liberalization 
-------------------------------------- 
 
¶6.  (SBU) Congressman Baird met Mirza Kusljugic and Slavisa 
Sucur, Members of the Federation Parliament belonging to the 
Social Democratic Party (SDP), over lunch.  Though selected 
to meet with him for their energy expertise -- Kusljugic, a 
former Ambassador to the UN, is Chairman of the Parliament's 
Energy Committee -- their comments focused largely on broader 
political issues.  Both were critical of the Dayton Accords 
and the resulting constitution, and were skeptical that the 
Butmir process would lead to a better solution.  They were 
also skeptical of the EU accession process, but hopeful that 
Bosnia would become a member of NATO in the near future, and 
were proud of Bosnia's participation in the recent Combined 
Endeavour exercise with NATO members.  Kusljugic and Sucur 
expressed frustration, however, with the country's failure to 
benefit from the EU visa liberalization process.  Kusljugic 
repeated the complaint made by many Bosniaks that the process 
is unfair, in that Bosnian Serbs and Croats will soon benefit 
from visa liberalization through their ability to obtain 
Serbian or Croatian passports, leaving the Bosniaks isolated. 
 The Congressman was sympathetic, and discussed ways to 
accelerate the EU's timing for granting visa-free travel to 
BiH. 
ENGLISH