The Government of the Republic of Srpska (RS) has adopted decisions on the termination of the
concession agreements for the construction of several small hydropower plants (SHPP) on the Drinjaca river near Zvornik (Cajkusa, Barski Potok and Medasevac ).
According to the statement, in 2006, RS Government granted concessions to local company Eta from Zvornik for the construction of these three SHPPs for a period of 30 years. All three hydropower plants should have an installed capacity of 0.5 MW.
The reason for termination of the concession agreement lies in the fact that the concessionaire did not fulfill its contractual obligations within the deadline, more precisely even after 15 years from the conclusion of the concession agreement, the concessionaire did not prepare project documentation, resolve property relations, obtain necessary approvals, provided financial resources, not started the construction of the facilities.
In related news, the municipality of Donji Vakuf in the Federation of Bosnia and Herzegovina (FBiH) refused to give approval for the construction of small hydropower plants Krivace 1 and 2 on the Vrbas river. The Municipal Council also adopted a decision not to consider the construction of SHPPs on the Vrbas river in the next 20 years.