Instead of eight, the government pays compensation of 100 million KM

01.08.2024. / 14:20

BANJALUKA – The Government of Republika Srpska rejected the proposal to pay compensation of eight million marks to the company “HES Vrbas” owned by the Slovenian company “Vijadukt” due to the termination of the concession contract for the construction of two hydroelectric power plants on Vrbas. The Slovenian company later initiated an international arbitration procedure that ended with a final decision to the detriment of Republika Srpska, which now has to pay this company more than one hundred million marks in compensation.

After this offer, “HES Vrbas” offered a new settlement in December 2015 in which they demanded 11.4 million euros in compensation, but the Government representatives did not agree to that either. Their fear of taking responsibility later cost Serbia many times more.

“The Minister of Energy and Mining, Petar Đokić, rejected the settlement that Srpska should pay slightly less than eight million KM, fearing that the public would condemn him for putting part of that money in his own pockets. After that, the case ended in arbitration, and the result is that RS now has to pay more than 100 million KM”our source explains.

CAPITAL is in possession of the second offer that the lawyers of the company “HES Vrbas” sent to the Government of the RS at the beginning of December 2015, in which they stated that 11.4 million euros is the amount for which they are ready to agree to negotiations on the mutual arrangement of relations.

In that letter, it is stated that “HEP Vrbas” suffered harmful consequences in the amount of 11.4 million euros as a result of the non-realization of the project, which occurred beyond its responsibility.

“On behalf of the sale price for 79 percent of HES Vrbas shares, the company MBB Energie UWS submitted a letter of intent and offered a purchase price of 12.2 million euros for 79 percent of HES Vrbas shares. The purchase price would be paid in full by the company Energie Baden Wurttemberg AG (EnBW), which made the payment of the first installment in the amount of 800,000 euros, which speaks volumes for the existence of the determination to start the implementation of the project.the letter states.

The representatives of EnBW, it is further stated, visited Banja Luka on several occasions, held the necessary presentations and eventually gave up on the realization of the project, seeing that there is no intention of the grantor, that is, the Government of RS, to proceed with its realization.

“HPP Vrbas, as a concessionaire, due to the inaction of the Government of the RS, was denied the stated amount of 12.2 million euros and denied the payment of 800,000 euros”specified in the letter.

We would like to remind you that the Concession Agreement with “HPP Vrbas” was signed in 2004, and it planned the construction of HPP “Krupa” and HPP “Banjaluka-Niska”. “HPP Vrbas” terminated the concession contract after the Government granted a concession for the construction of HPP “Bočac 2”, which prevented the construction of HPP “Krupa”.

The Government of Srpska offered “HES Vrbas” the possibility of building only one hydroelectric power plant, which this company owned by the Slovenian “Vijadukt” did not agree to. “Viadukt” initiated arbitration proceedings before the International Center for Settlement of Investment Disputes in Washington worth more than 90 million marks, which ruled in favor of “Viadukt” in April 2022.

Republika Srpska looked for a lifeline in the continuation of the proceedings and submitted a request to the Arbitration Council in London for the annulment of that decision. The London arbitration rejected the request for annulment of the arbitration decision from 2022 by which the RS, i.e. BiH, is obliged to pay “Viaduct” more than 90 million KM in compensation.

Lawyer Predrag Baroš from the law office “Baroš, Bičakčić & partners”, who represents the Slovenian company in this proceeding, said two days ago for CAPITAL that the total compensation has meanwhile grown to more than 105 million KM.

“Since the adoption of the final decision on May 1 of this year, we have approached the Council of Ministers of Bosnia and Herzegovina several times to collect compensation, but in vain. We addressed the Council of Ministers, because the sued party was Bosnia and Herzegovina, but they are passing the ball to the Government of RS, with which the Council of Ministers has signed an agreement on the settlement of this debt. We sent the last letter on July 26 of this year, and I guess someone will finally deign to respond”said Baroš.

CAPITAL: D. Momić