The Republic of Srpska could face an arbitration worth 102 million euros due to the termination of the concession agreement for the Trusina wind farm. The company Kermas Energija sent a warning to the Council of Ministers of BiH earlier this month, signalling its intention to initiate arbitration proceedings.
Kermas Energija owns 97% of the shares in the company Eol Prvi, which in 2012 concluded a concession agreement with the RS Government for the construction and operation of the wind farm at the Trusina location.
However, the project was never started because Kermas Energija failed to provide the requested bank guarantee, citing the fact that subsidies for electricity production had been abolished in the meantime. Since there was no guarantee, the RS Government terminated the concession agreement in 2019, and now Kermas Energija is threatening arbitration.
