The business entity “Kermas Energija” from Zagreb, according to the latest information from the Office of the Attorney General of Bosnia and Herzegovina (BiH), is on the verge of filing an arbitration lawsuit against BiH, due to the fact that the Government of Republika Srpska (RS) unilaterally terminated the concession contract for the construction of the “Trusina” wind farm near Nevesinje. The claim amount exceeds 200 million BAM.
According to the latest information available to the Office of the Attorney General of BiH, the mentioned company from Zagreb, represented by the law office “Baros & Partners,” did not agree to an extension of the deadline for the peaceful resolution of the dispute, which had been requested by the Government of RS.
However, the people from Zagreb are still leaving room for BiH, that is, for RS, to regulate the relations by mutual agreement, though it remains highly uncertain how much longer they will wait before finally filing the lawsuit against BiH before the International Centre for Settlement of Investment Disputes (ICSID) in Washington.
In the document of the Office of the Attorney General of BiH, it is stated that Kermas Energija owns 97 percent of the shares in the company Eol Prvi d.o.o., headquartered in Nevesinje, which on October 19th, 2012, signed a Concession Agreement with the Government of RS for the construction and use of a wind farm at the Trusina location.
The Zagreb company states that the Government of RS unilaterally terminated the concession agreement even though there was no legal basis for it, as they had fulfilled all obligations. Nevertheless, they state, the Government, “concealing the real facts, proposed to the National Assembly of RS (NARS) the adoption under the urgent procedure of amendments to the Law on Renewable Energy Sources and in this way prevented the Concessionaire from exercising the right to the guaranteed purchase price of the produced electric energy.”
