Bosnia's Prosecutor's Office has launched an investigation after the Commission for Concessions of Bosnia and Herzegovina failed to comply with the Constitutional Court's decision regarding the construction of power plants on Drina river – a joint project of Serbia and Bosnia's Republika Srpska entity.

In 2021, the Constitutional Court of Bosnia and Herzegovina ruled that there is a dispute over the jurisdiction to issue concessions between the state of Bosnia and herzegovina and its entity Republika Srpska. The matter of constitutionality was raised by MPs who warn that the construction of hydro power plant started on the state border which the entity has no right to dispose of.

After establishing legal dilemmas, the Constitutional Court tasked the Commission for Concessions to solve the dispute within the period of three months and later the deadline was prolonged for six more months. However, the problem remains un resolved.

The Prosecutor's Office of BiH has now asked the Commission member to declare on why the Court's decision has not been implemented.

The power plants’ construciton is a joint project of Serbia and Republika Srpska entity worth some 520 million euro, with Serbia as a majority owner. The cornerstone for the first of three hydro power plant, Buk-bijela, was laid in May 2021.

The Commission for Concessions of Bosnia and Herzegovina is an independent regulatory body, which has the authority to assess whether a concession was granted in accordance with the Constitution of Bosnia and Herzegovina, regardless of whether it was a domestic or foreign legal entity. The body has not been working in full capacity for years.

The Commission consists of seven members, from both Republika Srpska and the Federation BiH entities as well as Brcko District of BiH. Due to the expiration of term or retirements, the Commission currently consists of four members. So far, several attempts to appoint new members of the Commission have failed.

The competition for the selection and appointment of seven new members of the Commission, which was announced for the last time in 2021, was canceled on September 23 last year by the decision of Stasa Kosarac, Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina.

Otherwise, the Commission has not held a single session for a year.

Because of the failed appointment procedures, one of the Commission members Mensur Sehagic requested in July 2021 from the Court of Bosnia and Herzegovina to declare on the legality of the Commission's work. The court ordered that his complaint is reviewed, and this task has been completed only this year.

According to the ruling passed on January 18, 2024, the Court of Bosnia and Herzegovina accepted his claim in all its elements. It was established that the composition of the Commission for Concessions is disputed and that the method of electing members, territorial and ethnic representation is disputed as well. The Court also emphasised that the mandate of the members of the Commission has expired so that it is necessary to elect new members of the Commission as soon as possible.

The Court ordered the Commission to act as soon as possible in line the instructions, and after a proper and fully established factual situation, to make a proper and legal decision with the proper application of substantive law and without violating the rules of procedure.