A series of legal disputes tied to the cancellation of small hydropower concessions is creating financial exposure for Montenegro, with compensation claims described as amounting to tens of millions of euros. Government data published in 2024 says the state is party to ten court proceedings brought by concession holders. The cases concern contracts that were either terminated or allowed to expire.
Most lawsuits request reimbursement for investments already completed and also compensation for lost future profits. Investors argue those profits would have been earned over concession periods that could extend up to three decades. The claims therefore cover both sunk costs and revenue expectations under the original concession terms.
Origins of disputes after 2020–2021 government change
The majority of proceedings stem from decisions taken after the change of government in 2020–2021. During that period, authorities unilaterally terminated several concession agreements. Only one dispute is linked to a previously negotiated termination connected to the Dekar-Hidro project.
First rulings have begun to appear, according to available information. In the case involving BB Hidro, the court awarded compensation for part of the claimed direct damages. The same ruling rejected a request for more than €1.4 million in lost profit compensation.
Watercourses and investor groups named in court cases
Government records indicate that disputed projects are located on multiple watercourses across Montenegro. These include the Bukovica, Đurička, Komaraca, Bistrica, Muriška, Ljeviška, Trepačka, Slatina and Reževića rivers, as well as the Crnja river. The cases are spread among different investor groups rather than concentrated within a single network.
Publicly available information points to at least three major investor clusters involved in the disputes. One cluster includes companies connected to Florin Krasniqi and Triangle General Contractors. Another group involves Plava Hydro Power and associated partners, while a third network is linked to Hydra MNE, Igma Energy, and several domestic investors.
Claims focus on lost profits amid sector criticism
The legal actions are unfolding alongside long-standing public criticism of the small hydropower sector. Critics have argued that economic benefits were largely captured by concession holders. They also said local communities saw limited gains despite environmental impacts attributed to the projects.
Analysts cited in publicly available material say many claims emphasize lost profits rather than only reimbursement of invested capital. That approach is described as increasing potential financial exposure for the state. As proceedings continue through the courts, they are increasingly viewed as one of Montenegro’s most significant legal and financial challenges related to reversing its earlier small hydropower development policy.
