The Bosnian state-owned utility, ERS, has awarded a contract valued at €1.35 million, excluding VAT, to a consortium led by local firms CPK and Radis, alongside Croatia’s Elektroprojekt and the Hrvoje Požar Energy Institute. This contract is for the preliminary design and feasibility study of the Ustibar hydropower plant, also referred to as Mrsovo 2. This decision marks a significant step forward in the hydropower development sector within Bosnia and Herzegovina.
This latest award comes in the wake of an earlier tender process that was canceled in June 2025. The initial bid for the project was estimated at approximately €1.8 million but was annulled due to cost-cutting measures and insufficient funding outlined in ERS’s planning documents. The cancellation highlights ongoing financial challenges faced by utilities in the region.
The previous procurement process was fraught with disputes and legal challenges. A consortium led by Serbia’s Energoprojekt Hidroinženjering, along with the Bijeljina Institute for Water Management, was initially deemed the only acceptable bidder. However, CPK contested this decision multiple times, successfully challenging the award on three occasions due to issues related to bank guarantees and proof of qualified personnel.
Following repeated annulments, ERS opted to terminate the entire procurement process and withdrew the tender entirely. In this renewed approach, the estimated contract value was adjusted downward to €1.5 million excluding VAT, with a focus on selecting the lowest price among technically compliant bids as the primary criterion for awarding contracts.
After thorough evaluations and alignment with previous rulings from the complaints authority, ERS’s tender commission determined that the CPK-led consortium met all necessary documentation and legal requirements. This compliance has now cleared a pathway for advancing to subsequent phases of the Ustibar hydropower project, which is poised to contribute significantly to Bosnia’s renewable energy capacity.
