Bosnia’s Prosecutor’s Office confirms investigation into ‘Viaduct’ case

The case stems from a complaint filed by the BiH Attorney General’s Office.

Authorities stated that the complaint was submitted on March 28 and assigned to the responsible prosecutor. Investigations into the case had been conducted earlier, but the matter was transferred to the District Public Prosecutor’s Office in Banja Luka in September 2022.

The investigation centres around potential irregularities in the operations of HES Vrbas, a company partly owned by Slovenia’s Viadukt, which was supposed to construct hydropower plants. However, the Republika Srpska government never granted possession to the concessionaire, leading Viadukt to initiate arbitration proceedings in Washington.

In 2004, the RS government awarded a concession to HES Vrbas to build hydropower plants on the Vrbas River. However, that same year, RS also issued a concession for HE Bocac 2, effectively blocking Viadukt’s original project.

Financial and political fallout

In 2014, Viadukt launched arbitration proceedings, claiming damages due to contract termination. The arbitration panel in Washington ruled in favour of the company, ordering BiH to pay €40 million in compensation. The outstanding debt increases by approximately €9,200 daily, worsening financial pressure.

In 2017, Republika Srpska signed an agreement obligating itself to settle all fines, with then-RS Prime Minister Zeljka Cvijanovic endorsing the deal. However, the unpaid debt is already affecting BHANSA, Bosnia’s air navigation service, which risks losing Eurocontrol funding.

As a result, BHANSA employees, including air traffic controllers, have publicly demanded an urgent resolution, warning of severe national repercussions. Signs of the financial strain are already visible, as workers face salary reductions due to the mounting debt.