The hydropower plant Buk Bijela, located in the Republic of Srpska (RS), has recently garnered significant attention from potential partners in the United States. Energy and Mining Minister Petar Đokić has disclosed that multiple US stakeholders are keen to engage in the project’s development, signaling a broader trend of increasing international investment interest in the Western Balkans’ energy sector.
Discussions have already commenced with Bechtel, a prominent American engineering and construction firm, to explore various avenues for collaboration. These talks have centered on partnership models that may encompass engineering services, project development, and wider energy cooperation. Both parties appear committed to advancing negotiations and identifying tangible opportunities for collaboration.
The RS government is optimistic that prospective partners will soon submit specific proposals focusing on technical expertise, project financing, and infrastructure support. Officials believe that enhanced international participation could expedite the implementation of the hydropower project while bolstering regional energy security.
Authorities regard Buk Bijela as one of the most promising hydropower initiatives in the region. Minister Đokić has underscored its strategic importance, not only for RS but also for the broader regional energy landscape. The government aims to initiate construction as swiftly as possible to capitalize on this potential.
The project is being developed as a joint venture between the state-owned power utility ERS and Serbia’s electricity company EPS. It is part of the Upper Drina hydropower system, which includes plans for three hydropower plants along the river. The financial structure allocates 51 percent of investments from the Serbian partner while ERS contributes 49 percent, reflecting their ownership stakes in HES Gornja Drina, the joint company overseeing the project.
Despite laying its cornerstone in 2021, Buk Bijela has encountered notable delays attributed to two primary disputes. The first involves a legal case before Bosnia and Herzegovina’s Constitutional Court, initiated by a group of MPs asserting that concession rights for interstate projects should be determined at the state level rather than by RS authorities.
This case has since been referred to the Commission for Concessions of Bosnia and Herzegovina, which has yet to reach a final verdict. The second challenge stems from concerns raised by Montenegro regarding potential negative impacts on UNESCO’s protected Durmitor area, raising environmental issues that continue to affect the project’s progression.
