VMBiH: By settling multi-million obligation to 'Viaduct' we want to stop further interest and seizure of assets and income

(Patria) - The 51st extraordinary session of the Council of Ministers of Bosnia and Herzegovina was held in Sarajevo today.

At the session, the Ministry of Finance and Treasury of BiH was tasked to, without delay, within a maximum of 15 days, submit an appropriate proposal for a solution to the Council of Ministers of BiH regarding the method of executing the arbitration award of the ICSID Tribunal in Washington, case number ARB/16/36 of April 18, 2022, in accordance with regulations on financing the institutions of Bosnia and Herzegovina.

The expected solution would include the method of paying the principal debt with interest and costs of this arbitration proceeding to the plaintiff, who has requested from Bosnia and Herzegovina the settlement of obligations in the amount of 55,841,498.99 euros (109,216,479.00 KM), which relates to the calculation of the principal debt with interest as of March 1, 2025.

Additionally, the plaintiff also requests payment of 487,457.49 euros (953,383.98 KM) for the costs of enforcement proceedings it has initiated.

By settling the multi-million obligation, the Council of Ministers of BiH wants to stop the further accrual of interest, which amounts to 9,000 euros on a daily basis, and the enforcement proceedings initiated by the plaintiff in Bosnia and Herzegovina (in Mostar, Banja Luka, Brčko, and Sarajevo) and abroad (Luxembourg and Belgium), which are moving towards jeopardizing the assets of the Central Bank of BiH, the revenues of the Agency for Air Navigation Services of BiH (BHANSA) from EUROCONTROL, as well as the budget funds of BiH institutions.

At today's session, the Attorney's Office of BiH was tasked with concluding an Agreement with a law firm that will, by power of attorney, represent Bosnia and Herzegovina in the enforcement proceedings in Brussels, initiated at the proposal of 'Viaduct' against BHANSA's revenues from EUROCONTROL in connection with the ISCID Tribunal ruling.

Previously, the Information on the work of the Negotiating Team with the attorneys of Viaduct d.o.o. Portorož and others for acting on the ICSID Tribunal ruling in the case of Viaduct d.o.o. Portorož and others against Bosnia and Herzegovina and the current state of negotiations was considered.

The legal representatives of the plaintiffs Viaduct d.o.o. Portorož and others rejected, at a meeting in March this year, the proposal of the Negotiating Team appointed by the Council of Ministers of BiH regarding the waiver of interest and installment payment of the debt.

The Negotiating Team included representatives of the Attorney's Office, the Ministry of Finance and Treasury, and the Ministry of Justice of Bosnia and Herzegovina, without a delegate from the Government of Republika Srpska, which, despite the invitation of the Council of Ministers of BiH, did not appoint its representative.

We recall that the Slovenian company 'Viaduct and others' initiated arbitration proceedings due to the unilateral termination of the concession contract by the Government of Republika Srpska for the construction of a hydroelectric system on the Vrbas River.

The Council of Ministers of BiH has previously repeatedly referred to the Agreement on mutual rights and obligations regarding the arbitration proceedings in the case of the Slovenian company 'Viaduct' d.o.o. Portorož and others against the defendant Bosnia and Herzegovina, concluded by the Council of Ministers of BiH and the Government of Republika Srpska in 2017.

By this agreement, the Government of Republika Srpska committed to unconditionally fulfill all its payment obligations under the ruling rendered in this arbitration proceeding on behalf of Bosnia and Herzegovina, upon receipt of a documented request from the Attorney's Office of BiH.