The Republika Srpska (RS) is instructed to pay 90 million BAM in damages to the Slovenian company “Viaduct” for unilaterally terminating the concession agreement to construct hydroelectric power plants on the Vrbas River. This decision was finalized by the Arbitration Council in London, rejecting RS’s request to annul the previous arbitration decision obligating Bosnia and Herzegovina (BiH) to pay “Viaduct” 90 million BAM.
RS’s attempt to annul the decision was unsuccessful, leading to a significant financial challenge for the authorities. Legal representative Predrag Baros confirmed the arbitration decision on May 1st, with the enforcement procedure blockade lifted. The dispute originated in 2015 when “HES Vrbas” sought compensation from RS, leading to arbitration with BiH in 2016. The initial concession agreement worth 165 million euros was terminated in 2015 after facing public opposition.
Despite the ongoing legal battle, RS must now comply with the decision and compensate “Viaduct” for the damages incurred.
Source: Biznis Info
E.Dz.