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HomeEconomyHydroelectric power plant muddies the waters in the region

Hydroelectric power plant muddies the waters in the region

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Hydroelectric Power Plant Clouding Waters in the Region

“This region is a natural treasure, not just for Montenegro, but for the entire world. Tourists visit here to experience untouched nature, not to encounter concrete dams,” remarks 33-year-old Miloš Lazarević from Žabljak. His life is deeply intertwined with Durmitor.

Lazarević, who feels both a privilege and a duty to inhabit the center of a national park recognized as a World Heritage Site by UNESCO, is appalled by renewed discussions surrounding the construction of the Buk-Bijela hydroelectric power plant in Bosnia and Herzegovina. He worries that it could devastate the Tara River ecosystem and permanently alter the area’s landscape, which is vital for the tourism sector.

“For the everyday resident of Žabljak, who depends on tourist income, this would translate into fewer visitors, reduced earnings, and diminished opportunities for making a living,” explains Miloš. He believes it is a moral imperative to safeguard the environment in Žabljak for the benefit of future generations.

Montenegro: Reassessment After 20 Years

The Montenegrin government, under the leadership of Milo Đukanović, initially approved the construction of the Buk-Bijela hydroelectric power plant in conjunction with Republika Srpska in 2004. The plan included a high dam whose reservoir would extend to the confluence of the Tara and Piva rivers within Montenegrin territory.

This decision led to widespread protests from over 30 non-governmental organizations, which mobilized in June 2004 under slogans such as “Let it flow” and “I don’t want a pond, I want the Tara.” This civic initiative quickly gathered more than 11,000 signatures, which were submitted to the Parliament of Montenegro. In December of the same year, the Parliament adopted the Declaration on the Protection of the Tara River, effectively prohibiting any construction or interventions within the river’s canyon. Thus, the project was halted by the citizens of Montenegro.

Two decades later, in March 2024, Montenegro received an invitation from Republika Srpska’s President, Milorad Dodik, to reconsider the Buk-Bijela hydroelectric power project under new terms. The revised plan proposes a lower dam height, which, they assert, would prevent the reservoir from encroaching into Montenegrin territory and would not affect the protected area of the Tara River.

Montenegro’s Energy Minister, Saša Mujović, firmly states that the Montenegrin government will not engage in the construction of the Buk-Bijela hydroelectric power plant and that current regulations prohibit any construction in that locale. “The government has not discussed any matters related to commencing construction of Buk-Bijela,” asserts Mujović.

The Buk-Bijela hydroelectric power plant project, valued at €250 million, is a collaborative venture between Serbia and Republika Srpska. The financing is provided by the Electric Power Companies of Serbia and Republika Srpska. A joint enterprise named “Upper Drina Hydroelectric Power System” was formed, and in 2021, the foundational stone for the Buk-Bijela hydroelectric power plant was laid.

To date, over €20 million has been allocated for preparatory work, including accommodations for workers and access roads. However, progress has been stalled due to inter-state and internal complications. Chinese firms that entered the construction tender are currently unwilling to proceed, awaiting resolution of the situation.

The Complex Structure of Bosnia and Herzegovina Faces New Challenges

The construction of the Buk-Bijela hydroelectric power plant has been at a standstill since May 17, 2021. One challenge stems from Bosnia and Herzegovina’s convoluted state structure. The two main entities, the Federation of BiH and Republika Srpska, have yet to settle a dispute that hampers the project’s progress.

Notably, the cornerstone was laid despite rulings from the Constitutional Court of BiH. Republika Srpska is moving forward with the project based on the Law on Inland Navigation of the RS, which designates all rivers within that entity, including the Drina, as “internal waters of the RS.”

However, the Constitutional Court of BiH declared this legal framework unconstitutional in February 2021. Representatives from RS offered a justification, claiming that energy regulation falls under entity jurisdiction, which they noted was relevant because the hydroelectric power plant will be built in their territory.

Specifically, the Buk-Bijela hydroelectric power plant is to be constructed in the upper reaches of the Drina River, which does not delineate the border between Bosnia and Herzegovina and Serbia but rather lies within the territory of the RS entity. This stance overlooks the fact that the Drina River serves as an integral part of Bosnia and Herzegovina’s state border, thereby categorizing it as state property rather than subject to entity laws. The Constitutional Court reiterated this position in its February 2021 ruling.

According to Muharem Cero, a state property expert and former member of the Concessions Commission, “The Constitutional Court recognizes that Republika Srpska has authority over inland navigation matters, but strictly on waterways that do not simultaneously represent state borders, international navigable rivers, or public goods.”

This ruling followed an appeal filed by 24 members of the BiH State Parliament to the Constitutional Court in 2021, leading to a recognition of jurisdictional disputes over concession grants between BiH and the RS entity, a conflict the Court deemed beyond its resolution capacity. Consequently, the BiH Concessions Commission was tasked with addressing the concession grant compliance with the BiH Constitution, a resolution it faces difficulty achieving, as the commission effectively no longer exists.

Complicating matters is the absence of a law on state property in BiH, which cannot be established without state-level consensus—a consensus that is not attainable without the agreement of RS officials.

RS Assistant Minister of Energy and Mining, Milan Baštinac, views the legal proceedings initiated at the Constitutional Court as politically charged: “The construction of the hydroelectric power plant aligns fully with the BiH Constitution and falls within the sole jurisdiction of the Republika Srpska government.”

UNESCO: Results of the Study Anticipated in May

The initial “Environmental Impact Study for the ‘Buk-Bijela’ hydroelectric power plant project” was conducted in 2013, but Montenegro was not involved in its development.

Explanations from the District and Supreme Courts of Republika Srpska, deliberated from 2020 to 2022 concerning the annulment of the environmental permit for building the Buk-Bijela hydroelectric power plant, state that “there is insufficient evidence to indicate a harmful transboundary effect on Montenegro’s environment; hence applying the ESPOO Convention in a transboundary context was unnecessary.”

In response to complaints from Montenegro and its NGOs (especially NGO “GREEN HOME” and NGO OZON) regarding the execution of the ESPOO Convention—of which Montenegro and BiH are signatories—the ESPOO Convention Implementation Committee in Geneva issued recommendations in October 2023 for BiH to conduct a transboundary environmental impact assessment that includes Montenegro, as well as any other concerned parties.

“We are currently engaged in preparing a comprehensive ecological study in line with EU standards, UNESCO guidelines, and the ESPOO Convention. We expect this study to be completed by May,” Baštinac stated.

The Draft Study Overlooks Risks

Bosnia and Herzegovina has informed Montenegro of the initiation of a fresh environmental impact assessment for the Buk-Bijela hydroelectric power plant project. Following ESPOO Convention protocols, they have released a document titled “Data accompanying the request for a preliminary environmental impact assessment for the Buk-Bijela hydroelectric power plant, Foča Municipality.” The public hearing in BiH has concluded, and the initial document suggests that the construction would not adversely affect the Tara River.

“The reservoir will assist in sustaining populations of brown and brook trout, as it will protect adult and larger specimens from poachers who utilize underwater rifles to exploit these fish in the Tara River each summer,” reads the study.

The draft also posits that constructing the Buk-Bijela hydroelectric power plant would “diminish the negative effects Montenegro imposes on the territories of Republika Srpska (BiH) due to the operation and existence of the ‘Piva’ hydroelectric power plant.”

In light of this document, the Montenegrin Ministry of Ecology, Sustainable Development, and Northern Development has initiated a public discussion. Following this, the primary study concerning the environmental impact assessment will proceed to adoption.

Environmental Organizations Continue to Raise Alerts

For years, environmental groups across all three nations have sounded alarms regarding the adverse impacts the construction of the hydroelectric power plant could incur.

“The southern section of the reservoir will submerge parts of the proposed Natura 2000 site Maglić – Volujak – Zelengora, which will encompass the entire Drina River route within the area, obliterating nearly all habitats for two fish species—the rudd (Hucho hucho) and the goby (Cottus gobio)—and significantly affecting crayfish habitat. While not all regions are protected under national laws, both Bosnia and Herzegovina and Montenegro are obligated to safeguard them under the Bern Convention,” explains Nina Kreševljaković, legal advisor for the eco-association ARHUS BiH.

Environmental activist Aleksandar Dragićević emphasizes that the Tara River, alongside Durmitor, spans over 140 kilometers and constitutes an interlinked ecosystem in Europe.

“Though the boundaries of Durmitor National Park and Piva Nature Park are explicit, nature doesn’t recognize borders; thus, damming in BiH would disrupt the biodiversity of Durmitor, the Tara Canyon, and significant portions of northern Montenegro. Any hindrance to the river, creation of artificial barriers, and generation of new reservoirs have numerous detrimental effects on the area’s microclimate, leading to slowed water flow, blockages to fish migration paths, and obstruction of the natural river flow during floods. In the absence of an official and independent assessment or field studies from Montenegro, we can only speculate about the long-term repercussions on biodiversity and local communities,” asserts Dragićević.

Discussing the alteration in dam height, he emphasizes that regardless of the dam’s elevation, the river is being dammed; the river ecosystem is being transformed into a lake ecosystem, disrupting the balance of nature that has persisted for millions of years. “The Tara River has yet to recover from the previous highway construction project that armored its bed and redirected its flow. One reckless initiative like this could alter it forever,” warns environmental activist Aleksandar Dragićević.

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