The Government of the Republic of Srpska (RS) has committed to reopening the path for Kermas Energija to develop the Trusina wind farm, reversing its earlier decision to terminate the concession agreement for the project. The move was confirmed following a Government session at which approval was given for a new framework of cooperation.
As part of this decision, the Government authorized the Minister of Energy and Mining, Petar Đokić, to sign a cooperation agreement with Kermas Energija. This document is intended to create the formal basis for restarting the concession process for the wind farm planned in the Nevesinje area.
According to the Government, the Trusina site has been identified as having strong wind potential, making it suitable for large-scale electricity generation. The location was originally awarded a concession in 2012 to Eol Prvi, a company majority-owned by Kermas Energija. However, the concession contract was unilaterally terminated in 2019, after authorities concluded that contractual obligations had not been fulfilled.
While the Ministry of Energy and Mining maintains that the termination was justified, it acknowledged that lengthy negotiations were held with Kermas Energija in order to avoid international arbitration and ensure that the wind project is ultimately realized. These discussions resulted in a preliminary understanding on how the process could move forward.
Under the proposed arrangement, Kermas Energija has agreed to withdraw its intention to initiate arbitration proceedings before the International Centre for Settlement of Investment Disputes (ICSID) in Washington, or any other international or domestic legal forum. This commitment is conditional on the Government enabling the company to obtain a new concession through a negotiated procedure, in line with the Law on Concessions, for the construction of the Trusina wind farm.
The Ministry has prepared a draft cooperation agreement that would formally regulate the negotiated concession process and clearly define the obligations of both parties. This agreement is expected to serve as the legal foundation for restarting the project.
The renewed talks follow earlier developments disclosed last year, when Kermas Energija issued a formal notice to the Council of Ministers of Bosnia and Herzegovina, signaling the possible launch of arbitration proceedings over the cancelled concession.
