Republika Srpska could lose hundreds of millions through the arbitration disputes that threaten it, warned Srđan Traljić, public relations manager at Transparency International BiH, in an interview with Fena news agency.
The Viadukt case dates back to 2004, when the entity government awarded a concession to the company HES Vrbas, owned by the Slovenian Viadukt.
“I think that in 2013, a concession was awarded for the construction of the Bočac 2 hydroelectric power plant, which prevented the construction of this project. Viadukt initiated the arbitration dispute and the decision is as it is, the debt must be paid and it is up to us to determine who is responsible for this and future damages that will arise. The question remains whether this could have been resolved by agreement and whether the Government adequately protected the interests of all citizens,” says Traljić.
He emphasizes that the Viadukt case is not the only one. For example, in the case of the Trusina wind farm in Nevesinje, we may have the same problem.
He states that the contract was terminated and last year “Kermas Energija” sent the Council of Ministers of BiH a warning before initiating arbitration proceedings. The concession was awarded in 2012, but two years later an annex to the contract was signed, which divided the 50-megawatt project into five projects of 10 megawatts each. This allowed the concessionaire to apply for incentives for the electricity it produces.
“We had the arrest of former ERS managers who approved it, but nothing came of that process. The concession was terminated and if arbitration occurs, we could lose significant funds. We should not forget this case regarding the concession granted to the company Komsar in Ugljevik for strategic reserves that are necessary for the operation of RITE Ugljevik. This company did not build another block of the thermal power plant and now we are in a situation where we have to buy out that concession so that the thermal power plant can operate normally,” said Traljić.
There are also many more controversial concession contracts with companies of questionable credibility and it is difficult to say what will happen with them.
“That is why we are advocating a systemic reform in the area of concessions, both in the process of awarding contracts and in the implementation itself. I am afraid that we will pay a high price because we did not have institutions that were ready to confront individuals who signed harmful contracts,” says Traljić.
Finally, he warned that we should not forget the arbitration disputes with Slovenia and Croatia over investments in two thermal power plants from the time of the SFRY, we already had a decision in the case of RITE Ugljevik.
“These are the largest electricity producers that brought in huge profits. For years, there has been talk about unethical business practices in ERS, about corruption scandals, and no one obviously thought that these obligations for the construction of these facilities could be paid. Now the question is how they will be repaid. On the other hand, for political reasons, I think that no one in Republika Srpska should raise the issue of the Zvornik and Bajina Bašta hydroelectric power plants, where Republika Srpska receives nothing even though these facilities are on the border. Since the war, municipalities have not even been paid compensation for submerged land, and these are serious funds,” concluded Traljić.
