Case ECS-10/18: Bosnia and Herzegovina / State aid

summary of the case

 

registered: upon complaint 25.09.2018

 

 

The subject matter of this case is a public guarantee granted by the Federation of Bosnia and Herzegovina in favour of the Export-Import Bank of China for a loan by the latter to the public utility Elektroprivreda BiH d.d. Sarajevo for the Tuzla 7 project. This guarantee has been found by the State Aid Council of Bosnia and Herzegovina not to contain elements of State aid.

The Secretariat preliminarily concluded that the State Aid Council’s decision does not comply with the State aid acquis and that the public guarantee constitutes State aid.

Article 18(1)(c) of the Treaty contains a prohibition of State aid which according to Article 19 of the Treaty also applies to public undertakings and undertakings, to which special or exclusive rights have been granted. These provisions, together with Article 6 of the Treaty, require the Contracting Parties to introduce a corresponding prohibition of State aid into their national legal systems and ensure its enforcement.