September 19, 2017
The construction of hydropower plant (HPP) Vranduk in Bosnia and Herzegovina will be the sole responsibility of Croatian company Končar after Austrian Strabag withdrew from the project.
Končar will take over the role of the consortium leader, daily Dnevni Avaz reported citing sources close to the state-owned power utility Elektroprivreda BiH (EPBiH)’s management.
Strabag, the current leader of the consortium, decided to withdraw from the project this summer, as its request for allocation of additional funds for covering the construction costs was not welcomed by EPBIH.
The value of this project amounts to EUR 58 million, and Končar, which has been the subcontractor under the current contract, agreed in negotiations with the EPBiH to continue the work under the same conditions and price, Dnevni avaz reported.
According to the daily’s sources, the EPBIH Supervisory Board has been informed about the Končar proposal and it is expected to take final decision.
EPBIH has agreed to this kind of cooperation because it is much more favorable than calling for a new tender. It is agreed that Končar, as the leader of the consortium, selects a domestic company to build the HPP Vranduk as the Croatian company is specialized exclusively in turbines delivery.
In the meantime, the dispute with Strabag is expected to be resolved by September 25, when the court in Vienna will consider determining the deposit for the work done so far on HPP construction.
EPBiH signed a contract with Strabag AG and 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 construction works, however, have not been progressing much so far.
This 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 would 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 HPP is the first major project for EPBiH after many years, since the construction of Višegrad HPP 40 years ago.