After more than two years of disputes, appeals, and repeated reviews, power utility Elektroprivreda Republike Srpske (ERS) has once again selected a preferred bidder for the preparation of a feasibility study for the planned Ustibar hydropower project. The contract, valued at approximately EUR 1.5 million including VAT, has become one of the longest-running and most controversial procurement procedures in the energy sector of the Republic of Srpska.
The latest decision returns the contract to a consortium consisting of the Civil Engineering Institute of Banja Luka (GIBL), Radis from East Novo Sarajevo, Elektroprojekt Zagreb, and the Energy Institute Hrvoje Pozar from Zagreb. The same consortium had originally been awarded the contract earlier this year, but the decision was subsequently annulled by Bosnia and Herzegovina’s Procurement Appeals Office following a complaint filed by a rival consortium led by Energoprojekt Hidroinzenjering from Belgrade and the Water Management Institute of Bijeljina.
In its renewed ruling, ERS stated that it had re-evaluated all bids in accordance with the instructions issued by the appeals authority. During the process, the utility requested additional documentation and clarifications from the selected consortium regarding technical references, certificates, and the qualifications of key experts. According to ERS, the supplementary materials successfully addressed all disputed issues concerning professional experience and technical competence, leading the utility to once again declare the consortium’s bid fully compliant and the most favorable offer.
At the same time, ERS maintained that the competing bid submitted by Energoprojekt and its partner could not be reconsidered, arguing that its inadmissibility had already been confirmed through a final administrative decision by the appeals body. As a result, the utility considered the matter legally settled and excluded the offer from further evaluation.
The procurement process has faced numerous setbacks since its launch at the end of 2023. Last year, ERS attempted to cancel the tender, citing cost-rationalization measures, after several unsuccessful efforts to award the contract to a consortium headed by Energoprojekt Hidroinzenjering. However, that cancellation itself became the subject of legal proceedings.
The Procurement Appeals Office later overturned ERS’ cancellation decision, concluding that the utility had acted without sufficient transparency and contrary to public procurement regulations. The ruling emphasized that the project had already been planned and budgeted before the cancellation attempt, raising concerns about the justification for halting the procedure.
With the latest decision, the feasibility study contract has once again been awarded to the consortium led by GIBL, reviving progress toward the further assessment of the proposed Mrsovo 2 Hydropower Plant (HPP Ustibar). Despite this development, it remains uncertain whether the procurement process has finally reached its conclusion, given the lengthy history of legal challenges, appeals, and administrative disputes that have surrounded the project.
