Sjednice
Council of Ministers of Bosnia and Herzegovina Holds Its 51st Extraordinary Session
03/27/2025
The 51st extraordinary session tasked the Ministry of Finance and Treasury of BIH to provide to the Council of Ministers of BIH, within 15 days at latest, an appropriate proposal solution on the enforcement of the arbitrage award by ICSID Tribunal in Washington, No. ARB/16/36, of April 18, 2022, following regulations on financing of Bosnia and Herzegovina institutions.
The expected solution would include a way of payment of main debt with interests and costs of the arbitrage procedure to the prosecutor, which requested Bosnia and Herzegovina to fulfil its obligations in amount of EUR 55,841,498,99 (KM 109,216,479,98), referring to calculation of the main debt with interests as of March 1, 2025.
Additionally, the prosecutor requests a payment of EUR 487,457.49 (KM 953,383,98) for the costs of executive proceedings it initiated.
The Council of Ministers of BUIH wants to settle its multimillion obligations so as to prevent further interest accounting, reaching EUR 9,000 daily, and to start prosecutorial enforcement procedure in Bosnia and Herzegovina (in Mostar, Banja Luka, Brčko and Sarajevo) and abroad (Luxembourg and Belgium), tending to harm the property of the Central bank of BIH, revenues of the Agency for Air Navigation Services in BIH (BHANSA) from EUROCONTROL, as well as budget resources of BIH Institutions.
The BIH Chief Attorney’s Office was requested at today’s session to conclude an agreement with a lawyer’s company to represent Bosnia and Herzegovina in an enforcement procedure in Brussels, initiated upon “Viatuct”’s proposal, burdening BHANSA and EUROCONTROL revenues in connection with ISCID Tribunal award.
A piece of information had previously considered on work of the Negotiating Team with representatives of Viaduct, Ltd. Portorož and others for enforcement based on the ICSID Tribunal award in case Viaduct, Ldt. Portorož against Bosnia and Herzegovina and the status of the contract.
The legal representatives of the claimant Viaduct, Ltd. Portorož and others rejected a proposal by the Negotiating Team, appointed by the Council of Ministers of BIH, concerning a waiver of interest and debt settlement in instalments. The Negotiating Team was comprised of representatives from the Chief Attorney’s Office, Ministry of Finance and Treasury and Ministry of Justice of Bosnia and Herzegovina, however without a representative of the Government of Republika Srpska, which failed to appoint its representative, despite a call from the Council of Ministers of BIH.
The Slovenian company “Viaduct and others” started an arbitrage procedure due to a unilateral termination of the concession contract of the Government of Republika Srpska for development of a hydro-power plant system on the River Vrbas.
The Council of Ministers of BIH had been referring several times on an Agreement on Mutual Rights and Obligations concerning the arbitrage procedure in case of the Slovenian company “Viaduct, Ltd. Portorož and others” against clamed Bosnia and Herzegovina, concluded by the Council of Ministers of BIH and Government of Republika Srpska in 2017. The Government of Republika Srpska committed itself by the Agreement to fulfil unconditionally all its payment obligations against the award taken in this arbitrage procedure in behalf of Bosnia and Herzegovina, upon a receipt of documented request from the Chief Attorney’s Office of BIH. (end)
Link for Photos:
https://www.flickr.com/photos/vijeceministara/albums/72177720324688570