Elektroprivreda Republike Srpske (ERS) has selected a preferred bidder again for the preparation of a feasibility study for the planned Ustibar hydropower project, following more than two years of disputes and repeated procurement reviews. The contract is valued at approximately EUR 1.5 million including VAT. ERS said the decision follows further administrative steps connected to the procurement procedure.
Consortium reinstated for feasibility study work
The renewed award returns the assignment to a consortium comprising the Civil Engineering Institute of Banja Luka (GIBL), Radis from East Novo Sarajevo, Elektroprojekt Zagreb, and the Energy Institute Hrvoje Pozar from Zagreb. ERS previously selected the same consortium earlier this year, but Bosnia and Herzegovina’s Procurement Appeals Office annulled that decision. The annulment followed a complaint filed by a rival consortium led by Energoprojekt Hidroinzenjering from Belgrade and the Water Management Institute of Bijeljina.
In its updated ruling, ERS said it re-evaluated all bids in line with instructions issued by the appeals authority. During the process, the utility requested additional documentation and clarifications from the selected consortium covering technical references, certificates, and qualifications of key experts. ERS stated that the supplementary materials resolved disputed points related to professional experience and technical competence.
ERS also declared that the consortium’s bid was fully compliant and assessed as the most favorable offer after the renewed review. At the same time, it maintained that the competing bid submitted by Energoprojekt and its partner could not be reconsidered. ERS said the inadmissibility of that offer had already been confirmed through a final administrative decision by the appeals body, leading it to exclude the bid from further evaluation.
Procurement timeline includes tender cancellation appeal
The procurement procedure began at the end of 2023 and has experienced multiple setbacks since then. 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 later became part of legal proceedings.
The Procurement Appeals Office overturned ERS’ cancellation, stating that the utility acted without sufficient transparency and contrary to public procurement regulations. The ruling also noted that the project had already been planned and budgeted before ERS attempted to halt the procedure.
Mrsovo 2 HPP Ustibar assessment resumes
With this latest decision, ERS has once again awarded the feasibility study contract to the consortium led by GIBL. The award is linked to further assessment of the proposed Mrsovo 2 Hydropower Plant (HPP Ustibar). Even with the renewed selection, ERS indicated uncertainty remains over whether all stages of the procurement process have been fully completed.
The continued uncertainty is tied to a prolonged sequence of legal challenges, appeals, and administrative disputes around the Ustibar feasibility study procurement.
