Bosnian state-owned power utility ERS has completed the selection process for a contractor to prepare the preliminary design and feasibility study for the planned Ustibar hydropower plant, also known as Mrsovo 2. A consortium made up of local companies CPK and Radis, together with Croatia’s Elektroprojekt and the Hrvoje Požar Energy Institute, submitted the winning bid, valued at €1.35 million excluding VAT.
The new award follows the cancellation of an earlier tender for the same project in June 2025. That procedure, originally estimated at around €1.8 million, was annulled due to cost-cutting measures and the lack of secured funding in ERS’s planning documents.
The previous procurement process was marked by repeated disputes and legal challenges. A consortium led by Serbia’s Energoprojekt Hidroinženjering, together with the Bijeljina Institute for Water Management, was the only bidder deemed acceptable at the time. However, CPK successfully challenged the award decisions on three occasions before the state complaints review body, pointing to deficiencies related to bank guarantees, references, and proof of expert staff engagement.
After the third annulment, ERS terminated the entire procedure and formally withdrew the tender. In the renewed procurement, the estimated contract value was reduced to €1.5 million excluding VAT, and the lowest price among technically compliant bids was set as the sole award criterion.
Following a new evaluation and alignment with the earlier rulings of the complaints authority, the tender commission concluded that the offer submitted by the CPK-led consortium fully complied with the tender documentation and legal requirements, paving the way for the next phase of the Ustibar hydropower project.