Thursday, December 27, 2007


SARAJEVO, Bosnia (December 27,2007) - The largest Bosnian engineering group Energoinvest has clinched a new $52 million deal with Libya to build power transmission lines and a transformer station, General Manager Dzemail Vlahovljak said yesterday.

He said Energoinvest has now secured projects amounting to over 120 million euros ($172.7 million) in Libya and projects worth some 60 million euros in Algiers, its traditional markets from before the 1992-95 Serbian,Montenegrin and Croatian aggressions against Bosnia.

"These contracts provide security and stability to our operation, which was hurt this year by the global political situation, particularly in Algiers," Vlahovljak told an annual news conference in Sarajevo.

He said that Energoinvest results were influenced by U.S. Dollar weakness and rising oil prices.

Energoinvest's preliminary results for 2007 showed revenues of 319.5 million Bosnian Marks ($235.3 million) and profits of 2.7 million Bosnian Marks, compared with 2006 revenues of 306.1 million Bosnian Marks and profits of 2.5 million Bosnian Marks.

It aims to more than double profits next year and increase revenues to 384.1 million Bosnian Marks, said Finance Director Dzevad Ganic.

The company is among top five Bosnian exporters and exports account for half its revenues. Energoinvest had annual turnover of about $2.5 billion before the 1992-95 Serbian,Montenegrin and Croatian aggressions against Bosnia, during which it was heavily damaged.

It has recovered and stabilised in recent years, and regained its pre-war markets in Africa and Asia.

Energoinvest plans to expand to the Middle East next year by forming a joint venture with partners in Saudi Arabia, said Vlahovljak's deputy Abdulharis Seta.

Vlahovljak also said Energoinvest should now play a bigger role in the plans to construct hydro- and thermo-power plants in Bosnia over the next years.

"If we are building hydro-electric plants in Pakistan, Libya, Algiers, isn't it normal that we do such projects in our country," he said.

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