June 20 (SeeNews) - The EU has allocated a one million kuna ($150,200/134,800 euro) grant to fund a comprehensive cost-benefit analysis of a prohect to build a gas pipeline linking Croatia and Bosnia, Croatian gas transmission system operator Plinacro said on Tuesday.
The funds, granted by the European Commission as part of pre-accession assistance, will be used jointly by Plinacro and Bosnia's gas monopoly BH Gas, Plinacro said in a statement sent to SeeNews.
In May, the two companies signed a memorandum of understanding and cooperation, putting a special emphasis on linking their gas systems over the southern point of interconnection (direction Zagvozd - Imotski - Posusje - Novi Travnik).
At the time, BH Gas said the country should shortly begin the construction of the gas pipeline in a bid to diversity gas supplies. It also said that environmental and financial studies towards the implementation of the project should be completed within the next 12 months.
The project is on the list of Projects of Mutual Interest (PMI) of the Energy Community.
Bosnia's existing gas pipeline system is 40 years old.
(1 euro=7.41928 kuna)