Lawmakers in the Bosnian Federation are set to consider expedited legal amendments on as early as Wednesday to allow a private U.S.-linked firm to take over the Southern Gas Interconnection, a move critics warn bypasses transparency and risks public funds.

The 162-kilometer (100-mile) pipeline is designed to link Bosnia’s gas network to Croatia’s liquefied natural gas (LNG) terminal on the island of Krk. 

While Western officials view the project as essential to ending Bosnia’s total reliance on Russian energy, the shift toward private development has sparked a backlash from anti-corruption watchdogs.

The proposed changes would designate a newly formed company, AAFS, as the project’s lead investor and operator, sidelining the state-owned utility BH-Gas. 

Transparency International Bosnia and Herzegovina described the move as a “dangerous precedent” that eliminates competitive bidding.

“The proposal eliminates any possibility of competition,” the group said in a statement, warning of “regulatory capture” where political or commercial interests exert undue influence over critical infrastructure.

Pippa Gallop, an energy adviser at Bankwatch, said the amendments could breach national concession laws by leaving key contract details to opaque negotiations. 

She noted the plan adds 85 kilometers (53 miles) to the original route, potentially increasing costs by €77 million ($83.5 million) without a formal feasibility study.

“One way or another, the public is bound to end up paying, either via their bills or the federal budget,” Gallop said.

The project has been stalled for years by ethnic political friction, with Croat officials previously demanding a new operator based in Croat-majority regions, while the existing law favored Sarajevo-based BH-Gas. 

U.S. officials recently stepped in to break the deadlock, arguing that American private-sector involvement would accelerate construction and secure reliable LNG supplies.

Despite the push for energy independence, some experts question the pipeline’s long-term viability. 

Gas accounts for less than 3% of Bosnia’s energy mix, and critics warn the project could take a decade to complete, risking the creation of "stranded assets" as Europe shifts toward renewable energy.