Renewables

Concession agreement scrapped for Trusina wind farm

Photo: Pixabay

Published

March 19, 2019

Comments

0

Share

Published:

March 19, 2019

Comments:

0

Share

The government of Republika Srpska, an entity of Bosnia and Herzegovina, has severed a concession agreement with Eol Prvi for the construction of the Trusina wind farm in Nevesinje, which had been announced to soak an investment of BAM 150 million (around EUR 76.5 million), the media in the region reported.

The start of construction on the Trusina wind farm had been repeatedly delayed. Even though the Ministry of Industry, Energy, and Mining insisted that the investor was serious and that it had submitted credible results it was working on the project, the government of Republika Srpska still scrapped the contract in early March, Capital.ba reported.

According to Milan Baštinac, assistant minister at the Ministry of Industry, Energy, and Mining, the government severed the agreement over the investor’s failure to submit a banking guarantee for the project.

“The concessionaire failed to submit a banking guarantee in the wake of the concession agreement signing,” said Baštinac, adding that there were no significant project developments from the moment the firm received the concession.

Asked why the agreement had not been canceled earlier over the concessionaire’s failure to submit the guarantee, Baštinac said that the government had tried to be flexible and that it understands problems concessionaires face.

“However, in this case, we exhausted all the possibilities, provided maximum conditions for the investment to be launched, approved new deadlines for the submission of the banking guarantee, sent warnings, but they failed to comply and we were forced to break the contract,” Baštinac said.

“The concessionaire failed to submit a banking guarantee in the wake of the concession agreement signing,” said Baštinac, adding that there were no significant project developments from the moment the firm received the concession.

Zlatko Mandžuka, top man of Nevesinje-registered Eol Prvi, said in July 2018 that the Trusina wind farm should launch production in late 2019.

The municipality of Nevesinje said at the time that the Trusina wind farm was designed to have 15 turbines, an installed capacity of 49.5 MW, and an annual output of around 160 GWh of electricity.

The UK-based Kermas Limited, owned by Croatian businessman Danko Končar, was supposed to be Eol Prvi’s strategic partner on the project.

The government of Republika Srpska issued a 30-year concession for the project back in 2012.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

EDP Renewables build wind park Romania buy renewable

EDP Renewables to build wind park in Romania, buy renewable energy projects

26 January 2022 - EDP Renewables advanced its wind power plant project of up to 70 MW in Galați while it is purchasing firms that develop wind and solar parks

Slovenia drafts decree to prevent opposition from local population to wind farms

Slovenia drafts decree to prevent opposition from local population to wind farms

26 January 2022 - Government of Slovenia has set in motion the procedures for the construction of its first wind farms

Energy Community renewables certificates project accelerate energy transition

Energy Community starts renewables certificates project to help accelerate energy transition

26 January 2022 - The Energy Community Secretariat is creating an electronic system for guarantees of origin to enable consumers to choose green electricity

Albania to boost solar, wind capacity by ten times through 2023

Albania to boost solar, wind capacity by ten times through 2023

25 January 2022 - Albania's transmission system operator OST said wind and solar capacity connected to its network may reach a combined 220.4 MW next year