INVESTMENT ARBITRATION OVER RiTE “UGLJEVIK” CONCLUDED WITH SETTLEMENT

SARAJEVO, AUGUST 24 /SRNA/ - The investment arbitration between “Elektrogospodarstvo Slovenije” and BiH concerning the Ugljevik Mine and Thermal Power Plant /RiTE Ugljevik/ has concluded with a settlement, meaning there was no reduction in the respondent's assets, the Public Attorney's Office of BiH said.

The Public Attorney's Office reminded that “Elektrogospodarstvo Slovenije” Maribor participated in financing the construction of the Ugljevik Mine and Thermal Power Plant during socialist Yugoslavia, under an arrangement that, among other things, provided for the delivery of electricity generated by the plant. Those deliveries ceased due to the war in Croatia in 1991. In 2014, “Elektrogospodarstvo Slovenije” initiated two arbitration proceedings to pursue its claims concerning RiTE Ugljevik: a commercial arbitration before an arbitral tribunal seated in Belgrade and an investment arbitration against BiH before the International Centre for Settlement of Investment Disputes /ICSID/ in Washington. “Elektrogospodarstvo Slovenije’s” claims in both arbitrations sought compensation for damages. They involved almost the same amount, which the Public Attorney's Office did not disclose, stressing that the amounts sought are not public information. “The commercial arbitration was concluded in 2023, and the Public Attorney's Office of BiH did not participate in it. During negotiations with ‘Elektrogospodarstvo Slovenije’ on implementing the commercial arbitration awards, RiTE Ugljevik reached agreements, thereby fully resolving the matter of the arbitration awards,” the Public Attorney's Office said. They added that the investment arbitration was conducted in parallel, with the Public Attorney's Office representing BiH, and that it was concluded with a settlement between the parties, as recorded in an order issued by the arbitral tribunal on August 3. “On behalf of BiH, the Public Attorney's Office concluded the settlement pursuant to a decision of the Council of Ministers dated July 2. The conclusion of the settlement did not result in any reduction in assets, thereby fully protecting the interests of BiH,” the Office of the Attorney General said.