The state-owned power utility in Bosnia and Herzegovina, ERS, has awarded a contract valued at €1.35 million excluding VAT to a consortium for the preliminary design and feasibility study of the Ustibar hydropower plant, also referred to as Mrsovo 2. This decision follows a previous tender cancellation in June 2025, which was estimated at around €1.8 million, primarily due to cost-cutting measures and insufficient funding outlined in ERS’s planning documents.
The earlier procurement process faced significant challenges, including disputes and legal issues. A consortium led by Serbia’s Energoprojekt Hidroinženjering was the only bidder initially deemed acceptable; however, their bid was contested multiple times by CPK, leading to the annulment of the award based on concerns over bank guarantees and qualifications of expert staff.
After three annulments, ERS decided to terminate the entire tender process and subsequently withdrew the initial tender. In this renewed procurement effort, the estimated contract value was adjusted to €1.5 million excluding VAT, with the criterion for selection focused solely on the lowest price among technically compliant bids.
The tender commission, after reassessing the submissions in line with previous rulings from the complaints authority, determined that the proposal from the CPK-led consortium met all necessary tender documentation and legal requirements. This approval marks a significant step forward for advancing the Ustibar hydropower project.
