The hydropower sector in Bosnia and Herzegovina is witnessing renewed interest from international stakeholders, particularly from the United States, as discussions around the Buk Bijela hydropower project gain momentum. Energy and Mining Minister Petar Đokić has indicated that various US companies are keen to engage in this significant energy initiative, highlighting a broader trend of increasing foreign investment interest in the Western Balkans’ energy landscape.
Among the potential partners is Bechtel, a prominent American engineering and construction firm. Minister Đokić has confirmed that preliminary talks have taken place with Bechtel to explore various collaborative frameworks, which may encompass engineering services and project development. Both parties appear committed to advancing negotiations to identify specific avenues for collaboration.
The government of the Republic of Srpska anticipates that these discussions will yield concrete proposals soon, especially in critical areas such as technical expertise and financing. Officials believe that leveraging international partnerships could expedite the project’s implementation and enhance regional energy security, which is increasingly vital amid evolving energy demands.
Buk Bijela is positioned as a key hydropower development within the region, with strategic implications not just for the Republic of Srpska but also for the broader energy market in Southeast Europe. The government has expressed a strong desire to initiate construction at the earliest opportunity, emphasizing the project’s importance in diversifying energy sources and bolstering infrastructure.
This hydropower plant is being developed as a joint venture between the state-owned utility ERS and Serbia’s electricity company EPS. The Buk Bijela project is part of the Upper Drina hydropower system, which plans to establish three hydropower plants along the river. Financial arrangements indicate that EPS will contribute 51 percent of the investment, while ERS will cover 49 percent, aligning with their respective stakes in the joint entity HES Gornja Drina.
Despite its potential, progress on Buk Bijela has been hindered since the cornerstone was laid in 2021. Legal challenges have emerged, notably a case before the Constitutional Court of Bosnia and Herzegovina regarding concession rights for interstate projects, which some lawmakers argue should be managed at the state level rather than by local authorities. This case has been referred to the Commission for Concessions of Bosnia and Herzegovina, which has yet to reach a final verdict.
Additionally, environmental concerns raised by Montenegro regarding potential impacts on the UNESCO-protected Durmitor area have further complicated matters. These legal and environmental issues continue to affect timelines for project realization, underscoring the complex regulatory environment surrounding energy infrastructure development in Bosnia and Herzegovina.
