European Ombudsman opens probe into EIB financing for Bosnia’s Poklečani wind farm

The European Ombudsman has opened an investigation into the European Investment Bank’s (EIB) decision to support financing for the Poklečani wind farm project in Bosnia and Herzegovina, putting fresh scrutiny on how the development was permitted and assessed for environmental compliance.

Local media reported that the Ombudsman has formally requested detailed explanations from the EIB, along with access to documentation covering the approval process and the project’s environmental and social assessment.

Complaint challenges EIB’s internal review conclusion

The probe was triggered after a non-governmental organization filed a complaint contesting the bank’s conclusion that no further action was required following an internal review of the planned wind farm. The complainant argues that financing was approved without an evaluation that was sufficiently comprehensive with respect to environmental and social risks.

Supreme Court annulment raises permitting questions

Attention has also been drawn to a prior ruling by the Supreme Court of the Federation of Bosnia and Herzegovina, which annulled the project’s urban planning permit. The decision followed a lawsuit brought by a local resident and found that the permitting procedure had not been carried out in line with applicable legislation.

In its ruling, the court said several approvals required by law had not been obtained, unresolved property ownership issues remained, and key considerations related to cultural and historical heritage protection were not adequately addressed. It also stated that authorities did not properly consider the interests of private landowners and did not initiate necessary expropriation procedures.

Environmental impact assessment concerns cited

The court further pointed to archaeological and cultural heritage elements at the construction site, including traditional stone walls and wells, which it said were allegedly not properly assessed during the approval process. A central concern identified by the court was the absence of a finalized environmental impact assessment, despite such documentation being required under national environmental regulations.

Project details: location, scale and expected output

The Poklečani wind farm is planned for the Štitar mountain and Debelo Brdo area near Rakitno, within the municipality of Posušje. The project calls for 20 wind turbines, each with an approximate capacity of 6.6 MW.

If completed, it is expected to generate about 436 GWh of electricity annually—enough to supply more than 72,000 households—and to cut carbon dioxide emissions by over 400,000 tons per year compared with electricity produced from fossil fuels.

Implications for EP HZHB’s generation profile

Beyond its environmental implications, the project would expand EP HZHB’s renewable energy portfolio. It is projected to increase generation capacity by nearly 15% and raise total annual electricity output by around 20%, while also reducing exposure to hydrological variability and fluctuations in electricity market prices.

With the Ombudsman now seeking explanations and supporting documents from the EIB, investors will be watching how governance around permitting and risk assessment aligns with financing decisions—particularly where court findings have challenged elements of approvals tied to environmental impact assessment requirements and cultural heritage protections.