A series of legal disputes linked to the cancellation of small hydropower concessions continues to represent a significant financial risk for Montenegro, with compensation claims amounting to tens of millions of euros.
According to government data published in 2024, the state is currently involved in ten court proceedings initiated by concession holders whose contracts were either terminated or allowed to expire. Most of the lawsuits seek not only reimbursement of already completed investments but also compensation for lost future profits, which investors argue they would have earned over concession periods extending up to three decades.
The majority of cases stem from decisions taken after the change of government in 2020–2021, when authorities unilaterally terminated several concession agreements. Only one dispute relates to a previously negotiated termination involving the Dekar-Hidro project.
The first court rulings have already begun to emerge. In the case involving BB Hidro, the court awarded compensation for part of the claimed direct damages but rejected a request for more than €1.4 million in lost profit compensation.
Government records show that the disputes involve projects located on numerous watercourses, including the Bukovica, Đurička, Komaraca, Bistrica, Muriška, Ljeviška, Trepačka, Slatina, Reževića rivers, as well as the Crnja river. The lawsuits are distributed across several investor groups rather than concentrated within a single network.
Publicly available information suggests that at least three major investor clusters are involved. These include companies connected to Florin Krasniqi and Triangle General Contractors, another group involving Plava Hydro Power and associated partners, and a third network linked to Hydra MNE, Igma Energy, and several domestic investors.
The legal proceedings are unfolding against a backdrop of long-standing public criticism of the small hydropower sector. Critics have argued that economic benefits were largely captured by concession holders, while local communities saw limited gains despite the environmental impact of the projects.
Because most lawsuits rely heavily on claims for lost profits rather than only reimbursement of invested capital, analysts believe the potential financial exposure for the state could be substantial. As the cases progress through the courts, they are increasingly seen as one of the most significant legal and financial challenges arising from Montenegro’s decision to reverse its earlier small hydropower development policy.
