Renewables

Attempts to revive Vranduk HPP project in Bosnia and Herzegovina

Photo: EPBIH

Published

August 14, 2017

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Published:

August 14, 2017

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The companies involved in the construction of the Vranduk hydro power plant in Bosnia and Herzegovina have been trying to find a way to continue the construction of this HPP after the termination of the contract. Austrian Strabag has been exploring the possibility of settlement, while state-owned power utility Elektroprivreda BiH (EPBiH) has initiated talks with another company, media in the region reported.

Works on the construction of Vranduk HPP were stopped after Strabag decided in July to withdraw from the project. However, according to the Croatian daily Večernji list, the Austrian company representatives have talked with the EPBiH representatives about the possibility of reaching a settlement, the portal Energetika.ba reported.

The reason for the termination of the contract is the actual cost of the works. Večernji list has learned that the final offer submitted by Strabag was different from the bid submitted on the tender. The Austrian company allegedly requested another EUR 2.5 million to cover “additional costs” of the construction.

Elektroprivreda BiH did not accept this request, Strabag stopped works, and Bosnian power company stopped payments. After that, at the request of this Austrian company, the contract was terminated.

Vecernji list writes that, on the other hand,  in order to show Strabag that it cannot be blackmailed, the EPBiH has started talks with Euroasfalt company about the possibility to take over the project.

EPBiH signed a contract with companies Strabag AG and Croatian Končar KET, worth EUR 57.4 million, in January 2016. The agreement foresees preparation of project documentation, production, delivery and installation of equipment, construction works, testing and commissioning of the plant.

The construction of Vranduk HPP on the river Bosna was launched in September 2016. It was announced that the works should be completed in November 2019.

The HPP with installed capacity of 19.6 MW would produce 100 GWh of electricity annually, which would increase the share of electricity from renewable sources and contribute to reduction of the CO2 emissions. This wolud be the first ever HPP built on the river Bosna.

The funds for the project have been secured from Elektroprivreda BiH and loans from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

Vranduk is the first major project for EPBiH after many years, since the construction of Višegrad HPP 40 years ago.

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