Republika Srpska: RWE asked for decrease of concession fee, study showed only HPP Buk Bijela is profitable project instead of 4 planned

13. June 2013. / SEE Energy News

German Company “RWE Innogy” gave up construction of hydro power system Gornja Drina, because their studies showed that the only economically profitable construction is one of four planned plants.

Company RWE has concluded in the study that HPP Buk Bijela is the only profitable construction, not Sutjeska, Foca and Paunci and they asked concession compensation of 1% to achieved production. RS Government estimated that this is low concession compensation so they decided to break up with Germans after unsuccessful negotiations.

Earlier studies have predicted only construction of HPP Buk Bijela with a high damn which was supported by RS also. However, Montenegro has confronted this project because of the need of Tara canyon conservation and it was revised so HPP “Buk Bijela” dam was decreased and three more plants in the row were installed.

“RWE Innogy” Company didn’t want to comment concrete reasons for termination of cooperation with RS Government, they stated that both sides have obligated to the silence with the contract.

“I can say that the contract for strategic partnership was the subject of various deponent conditions, and the term for their accomplishment expired on 24 April. “We are sorry because of that”, Konkard Boker, spokesman of “RWE Innogy” Company said to “Nezavisne”. According to the German justice system, deponent conditions mean that contract can be enforced only after both sides achieve arranged obligations.

He said that despite unsuccessful realization of HES project on Gornja Drina, they still want to invest in renewable energy sources, stating that they have 2 billion EUR for these purposes in this and the next two years. “Focus is on the wind plants on the shore and sea and on enforcement of hydro power potentials”, Boker said.

Zeljko Kovacevic, RS Minister of Industry, Energy and Mining stated that RS Government will decide if project on Drina will realize independently or with strategic partner. Most likely his ministry already sent invitations to previously interested investors.

“This project is over for Government and RWE Company. We are now looking for next strategic partner i.e. Government will decide about realization of this project- if it will do that independently or it will look for strategic partner”, Kovacevic said.

He stated that Government and RWE disagree about “certain conditions” so foreign partner gave up from realization of this project what Government accepted.

Kovacevic stressed that neither side has right to ask for any refunding. According to his words, RS Government will reconsider all suggestions that are in interest of RS because it is strategic project in energy area.

RS Government broke up a contract with RWE Company for construction of HES Gornja Drina with estimated investment value of 460 million EUR on 15 May. Total installed power of 4 planned HPPs would amount 260 MW with annual production of 760 GWHs of electricity. The project predicted establishing the common company of RWE and “Elektroprivreda RS” with ownership participation 60 to 40% in advantage of Germans.

Source; Nezavisne

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