The basis for the construction of the power plant was a concession at the expense of war reparations, which the city of Niš received for the purpose of building this hydropower plant. Preparatory work on the construction began in May 1921, while it was planned to be completed in the summer of 1929. However, due to a strong storm and a flood, which swept away most of the construction material and damaged most of the already completed works during 1929 and 1930, the construction was completed in 1931.

Construction and technical characteristics:
Type of dam: Concrete
Height: 4 m
Installed power: 1.35 MW
Turbines: Three Francis turbines, manufactured by "J. M. Voith Heidenheim" (1931 and 1938)
Generators: 
•    Two three-phase alternating current generators, manufactured by "Siemens-Schuckert Werke Wien" (1931) - power: 352 kW each
•    One three-phase alternating current generator, manufactured by "Brown, Boveri & Co." Mannheim (1938) - power: 644 kW
Installed flow rate: 20 cubic meters per second
Possible annual production: 3.70 GWh