The long-delayed construction of the Mrsovo hydropower plant has entered a new phase after state-owned utility ERS terminated its agreement with Turkish contractor NGA and announced plans to select a new partner.
According to ERS Director Luka Petrović, the decision was made after unresolved technical and contractual issues made continuation under the existing terms unfeasible. The project, already affected by delays and significant financial commitments, now faces another restart despite substantial funds already spent, including a 20 million euro advance payment to the contractor and 35 million euros previously used to acquire the concession from Comsar Energy.
At the center of the dispute was a required redesign of key infrastructure components. The original design was based on flood calculations using a 500-year water level standard, but regulators later imposed a stricter requirement based on a 1,000-year flood scenario. This change affected critical structures such as the dam and river diversion system, leading to design revisions that would increase costs and modify technical specifications. The contractor refused to absorb these additional requirements, resulting in a breakdown of cooperation.
Preparatory works had already begun on site, including studies and planning for a diversion tunnel to redirect the Lim River during construction. However, without updated documentation aligned with regulatory standards, the project could not advance to the permitting phase. The inability to secure a construction permit ultimately brought progress to a halt.
ERS concluded that modifying the inherited contract would introduce financial uncertainty and additional risk of delays, and therefore decided to terminate the agreement and initiate legal proceedings against the contractor, while emphasizing that the project itself remains active.
Despite repeated setbacks, authorities maintain that the hydropower plant will eventually be completed. However, its development history highlights persistent challenges. Initially launched in 2014 with high expectations and relaunched in 2023 after the state assumed control of the concession, the project has still not progressed beyond early stages, becoming another example of delayed infrastructure tied to earlier agreements with Comsar Energy.
The final cost implications of the required design changes remain uncertain, as updated technical proposals have yet to be submitted. New bidding procedures are expected later this year, which should provide a clearer view of the financial scope and timeline for completing the 36.8 MW Mrsovo hydropower facility.
