Republika Srpska: Government seeks new foreign partner for Gornja Drina river 4 HPPs project after RWE withdrawal

, SEE Energy News

RS Minister of Industry, Energy and Mining, Zeljko Kovacevic said that Srpska’s Government will decide whether project of 4 HPPs on Drina construction will be realized independently or they will look for new strategic partner.

“This project is finished, according to the Government and German Company RWE. We are looking for strategic partner i.e. Government will decide about realization of this project- if this will work independently or it we will look for partner”, Kovacevic said to the journalists in Banjaluka.

He stated that RS Government and German Company RWE didn’t agree about certain conditions so foreign partner gave up from realization of the project and construction of 4 HPPs on Drina what Government accepted. Kovacevic did not wanted to reply to BN TV journalist question to specific and clarify his previous statements that actually RS government cancelled this partnership.

Kovacevic added that neither of contract sides does not have any right to ask for refunding in this situation. Same information is published on RWE Inoggi web site.

According to his words, Srpska’s Government will reconsider all suggestions that are in interest of Republika Srpska because this is strategic project in energy area.

RS Government broke up a contract with German Company RWE for strategic partnership in hydro energy potential of Drina’s upper basin last week.

This contract predicted construction of 4 HPPs- Buk Bijela, Foca, Paunci and Sutjeska on Drina River.

Condition for project realization in strategic partnership was achieving all goals in planned term. Considering that partners haven’t agreed about mentioned questions, decision for breakup was made.

Contract predicted that neither side will have any right to require for further actions, lost profit or damage compensation at any case if some of sides break a contract up.

Government made a decision for breakup on 15 May.

Contract with German company was signed on 16 September last year and it predicted construction of 4 plants in upper flow of Drina with total value of 460 million EUR.

Source; Nezavisne/Serbia Enegy See desk