Canada-based Reservoir Capital have decided to abandon Brodarevo hydro project which included two hydropower plants (HPPs) Brodarevo 1 and Brodarevo 2 on Lim river in Southwest Serbia, with installed capacity of 59 MW.
The decision comes after a decade-long development of the EUR 150 million project.
Reservoir Capital announced that its wholly owned Serbian subsidiary, Renewable Energy Ventures (REV) d.o.o. Belgrade has filed a voluntary petition under the Serbian Bankruptcy Code in the Serbian Bankruptcy Court in Belgrade, respecting the winding up of REV doo’s operations and liquidation of its assets.
According to a company statement, the relief is being sought to permit Reservoir to move forward with plans to focus on hydropower investment opportunities in frontier regions.
“Reservoir has chosen to set aside its project aspirations in Serbia, which included the Brodarevo hydro project, with this filing. Our plan is to shift from long lead-time and risky greenfield project development to clean power investments in good operating condition is intended to enhance shareholder returns over the long term,” CEO of Reservoir Lewis Reford said in a statement.
The Canada-based company has started development of Brodarevo hydro project in 2008. Almost all the time during this period company was under fire from local activists and NGOs which have been opposing the project due to environmental risks.
In July last year, the Serbian Administrative Court has annulled a decision concerning the preparation of the environmental impact study for future HPPs on the River Lim. Montenegrin Government has raised an issue of cross-border impacts.
Reservoir Capital has been granted Brodarevo 1 and Brodarevo 2 energy licenses and location permits to develop power plants on the River Lim near the cities Brodarevo and Prijepolje. These licenses are a vital part of the procedure to build power plants.