Croatia’s Končar to Build First Post-War Hydroelectric Power Plant in Bosnia

Total Croatia News

Austria’s Strabag wanted more money, so Končar took over the contract.

Croatian company Končar will take over the works on the construction of the Vranduk hydroelectric power plant on the Bosna river near Zenica in Bosnia and Herzegovina, after Bosnian Electric Company terminated a construction contract with Austria’s Strabag, reports on September 18, 2017.

The total works on the building of the first hydroelectric power plant which is being built in Bosnia and Herzegovina after the war, as announced when the tender for its construction was published, will be worth 142.9 million Bosnian marks (73 million euros), and the construction contract that was signed was worth about 113 million marks (about 57 million euros). The installed power will amount to 19.63 MW, and the annual production should amount to 102 GWh of electricity.

The works began in September 2016, and a consortium led by Strabag, which included Končar, was selected as the contractor after a public tender.

The Austrian company subsequently stated that the agreed price did not cover its cost calculation and demanded an increase, but Bosnian Electric Company rejected the request. Strabag allegedly wanted additional 13 million marks (6.6 million euros).

After the rejection from Sarajevo, Strabag left the project, and Končar – Energy and Transport Engineering, which was a part of the consortium, received an offer from Bosnia to take over the project in order to avoid the announcement of a new public tender, which would bring a major delay.

“Končar is the best solution for the time being, because it has agreed to resume works under the same conditions and with the same price,” said an unnamed source from Bosnian Electric Company, explaining that this agreement still needed to be confirmed by the company’s supervisory board, but it is expected that will not be an obstacle.

Končar will need to select a construction company from Bosnia and Herzegovina as a subcontractor for construction works.

Translated from


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