RWE won’t have to sell electricity in RS

9. November 2012. / SEE Energy News

The strategic partnership agreement, which was signed by the Government of the Republic Srpska and the German company RWE regarding the “Upper Drina” project, clearly states that future concession company that will be formed according to this agreement, will have no obligation to supply tariff customers in the RS, instead it will be free to sell in domestic and international markets.

It is interesting that it says in the contract that the strategic partner is aware that proceedings on the appeal of “Barack” company from Israel is ongoing in the Constitutional Court of BH and that “the government of RS will protect and compensate to” the strategic partner and the concession company for all losses, damages and expenses (excluding loss of profit), if the consequences of this procedure are directly affecting the project Upper Drina.

It is clearly specified and that the German company could not possibly be responsible for the proceedings conducted by “Barack” from Israel.

Under the “special statement” in the contract EPIRS guarantees to the German partner that the protocol signed in 2008 with the Electric Power Industry of Serbia regarding the use of the upper Drina potential will not have any negative impact on the project planned with RWE.

“EPIRS” took upon itself to protect and compensate to the German company, which will be the majority shareholder in the Upper Drina project if the protocol with Serbia has a direct negative impact on the project with RWE.

All major details of the contract with RWE will be reviewed by the members of the National Assembly of the Republic Srpska at the session that will be held on November 6, after the signing of the agreement on the selection of a strategic partner for the project hydropower system “Upper Drina” and a strategic partnership agreement with RWE on September 26.

This project actually encompasses research, development, construction and commercial use of four plants in Upper Drina hydro power system, Buk Bijela, Foca, Paunci and Sutjeska.

The project is divided into phases, the first of which is the research, which involves the establishment of a project company and granting four research concessions (one for each separate project) to the project company.

In accordance with the decision of the Government on the conditions, criteria and methods for the selection of a strategic partner for the project Upper Drina hydro power system, the project company and the concession company will be organized as a limited liability companies whose majority shareholder will be German RWE, while minority members will be EPIRS and HPP on Drina, Visegrad.

Among the obligations of EPIRS, HPP on Drina and RWE is to meet the requirements for the issuance of the relevant approvals from the Competition Council of Bosnia and Herzegovina and other bodies for the protection of the concentration, but also to obtain the approval for the contract from the National Assembly of the Republic Srpska.

Source Serbia Energy Magazine

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