Elektroprivreda Republike Srpske (ERS) has selected a preferred bidder for the preparation of a feasibility study for the planned Ustibar hydropower project, according to its latest decision. The contract is valued at approximately EUR 1.5 million including VAT. The procedure has been described as one of the longest-running and most controversial in the energy sector of the Republic of Srpska.
Consortium reinstated for feasibility work
The renewed ruling returns the award to a consortium made up of the Civil Engineering Institute of Banja Luka (GIBL), Radis from East Novo Sarajevo, Elektroprojekt Zagreb, and the Energy Institute Hrvoje Pozar from Zagreb. ERS said the consortium had originally been chosen earlier this year. That earlier decision was later annulled by Bosnia and Herzegovina’s Procurement Appeals Office after a complaint was filed by a rival consortium.
The complaint was submitted by a group led by Energoprojekt Hidroinzenjering from Belgrade together with the Water Management Institute of Bijeljina. Following the annulment, ERS issued a renewed evaluation process aligned with instructions from the appeals authority. During this stage, ERS requested additional documentation and clarifications from the selected consortium covering technical references, certificates, and qualifications of key experts.
Re-evaluation of bids and treatment of competing offer
ERS stated that the supplementary materials addressed disputed points related to professional experience and technical competence. As a result, the utility declared the consortium’s bid fully compliant and described it as the most favorable offer. At the same time, ERS said it could not reconsider the competing bid submitted by Energoprojekt and its partner.
ERS argued that the competing offer’s inadmissibility had already been confirmed through a final administrative decision by the appeals body. The utility therefore excluded that bid from further evaluation.
Tender setbacks since end-2023 launch
The procurement process began at the end of 2023 and has faced multiple setbacks over more than two years of disputes and reviews. Last year, ERS attempted to cancel the tender, citing cost-rationalization measures after several unsuccessful efforts to award the contract to a consortium headed by Energoprojekt Hidroinzenjering. That cancellation decision was later challenged in legal proceedings.
The Procurement Appeals Office overturned ERS’ cancellation, stating that the utility acted without sufficient transparency and contrary to public procurement regulations. The appeals ruling also noted that the project had already been planned and budgeted before ERS attempted to halt the procedure.
Progress toward assessment of HPP Ustibar
With the latest decision, ERS awarded the feasibility study contract again to the consortium led by GIBL. The award is linked to further assessment of the proposed Mrsovo 2 Hydropower Plant (HPP Ustibar). Despite this development, it remains unclear whether the procurement process has reached its conclusion given ongoing legal challenges and administrative disputes.
