Bosnia and Herzegovina, Republic of Srpska Government issued unconditional 45 million euros guarantee to Viaduct, SEE Energy News
The Government of the Republic of Srpska (RS) has issued an unconditional guarantee to pay 45 million euros in compensation to Slovenian company Viaduct in the event that the arbitration ruling is not annulled.
This is the compensation that the RS is obliged to pay to the Slovenian company for the unilateral termination of the concession contract for the construction of hydropower plants on the Vrbas river.
To try to avoid paying such a huge compensation, RS Government has requested the annulment of the ruling and a postponement of its enforcement.
The arbitration tribunal accepted this, subject to a condition set by Viaduct, which is to provide an unconditional guarantee that the debt will be paid if the ruling is not annulled.
The Arbitration Panel of the International Center of Settlement of Investment Disputes (ICSID) will consider the appeal in April next year, while its final decision on the matter is expected in mid- 2023.
Last April, RS lost 45 million euros in a dispute before the arbitration court in Washington. The arbitration procedure was launched by the Slovenian company Viaduct, due to the unilateral termination of the concession agreement for the construction of two hydropower plants on the Vrbas river.
In September 2016, Viaduct has filed a request to initiate arbitration procedure in order to seek compensation for damages caused by violating the provisions of the agreement on the protection of investments between Slovenia and Bosnia and Herzegovina, as well as the provisions of the Energy Charter Treaty also signed by both Slovenia and BiH.
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