Secretariat and Bosnia and Herzegovina sign settlement agreement regarding Ugljevik 3 ahead of the Ministerial Council

28 November 2018

Another successful mediation was conducted under the auspices of the Energy Community Secretariat’s Dispute Resolution Centre, this time as part of the dispute settlement procedure in case ECS-1/15.

In case ECS-1/15, the Secretariat took the view that the permitting procedure of the planned thermal power plant Ugljevik 3 in the Republika Srpska entity of Bosnia and Herzegovina failed to comply with the provisions of the Environmental Impact Assessment Directive.

The mediation commenced at the initiative of the authorities of Bosnia and Herzegovina. The mediation was carried out under Title III of Procedural Act 2016/3/ECS on the establishment of a Dispute Resolution and Negotiation Centre. On 31 October 2018, the parties appointed Ms Miryan Weichselbaum – Gharibo, a mediator from the Energy Community Panel of Mediators. A joint session with the parties took place on 19 November 2018. 

The settlement agreement was signed on 27 November 2018. Bosnia Herzegovina committed (with the agreement of the investor, Comsar Energy Republika Srpska Ltd. Banja Luka) not to use the environmental permit issued as a result of the non-compliant environmental impact assessment procedure. The investor has the possibility to initiate a new environmental impact assessment procedure, which will be completed with the support of the Secretariat.

The Ministerial Council was due to take a decision in Case ECS-1/15 in Skopje on 29 November 2018.  As agreed in the settlement agreement, the Secretariat will withdraw the case from the agenda of the Ministerial Council.  Case ECS-1/15 will be closed upon full implementation of the settlement agreement by Bosnia and Herzegovina.

In Scope:

  • Bosnia and Herzegovina Bosnia and Herzegovina