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European Ombudsman Investigates EIB Financing for Poklečani Wind Farm

The European Ombudsman has initiated an inquiry into the European Investment Bank’s (EIB) financing decision for the Poklečani wind farm project in Bosnia and Herzegovina. This investigation raises critical questions regarding the project’s permitting process and its adherence to environmental regulations.

Local media reports indicate that the Ombudsman has requested comprehensive documentation from the EIB, seeking clarity on the approval process and the environmental and social assessments related to this project. This inquiry comes in response to a complaint submitted by a non-governmental organization, which contends that the EIB’s internal review failed to adequately evaluate the environmental and social risks associated with financing.

A significant factor prompting this investigation is a ruling from the Supreme Court of the Federation of Bosnia and Herzegovina, which invalidated the urban planning permit for the wind farm. The court’s decision stemmed from concerns raised by a local resident, asserting that proper legal procedures were not followed in granting the permit.

The court’s findings highlighted multiple deficiencies in the permitting process, including missing legally required approvals, unresolved property ownership disputes, and insufficient consideration of cultural and historical heritage protections. Additionally, it was noted that authorities did not adequately address private landowners’ interests or initiate necessary expropriation procedures.

Concerns were further amplified by evidence of archaeological and cultural heritage at the proposed construction site, such as traditional stone walls and wells, which had allegedly not been thoroughly evaluated during earlier assessments. A key issue identified was the lack of a finalized environmental impact assessment—a requirement under national environmental law.

The Poklečani wind farm is planned for development in the Štitar mountain and Debelo Brdo region near Rakitno, within Posušje municipality. The project aims to install 20 wind turbines, each with an estimated capacity of 6.6 MW.

If successfully completed, this facility is projected to generate approximately 436 GWh of electricity annually, sufficient to power over 72,000 households. Additionally, it is expected to mitigate carbon dioxide emissions by more than 400,000 tons per year compared to fossil fuel-based electricity generation.

The expansion of this project would significantly enhance EP HZHB’s renewable energy portfolio by nearly 15%, increasing its total annual electricity output by around 20%. Moreover, it would help stabilize the company’s operations against hydrological variability and fluctuations in electricity market prices.

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