Montenegro: A2A declines new TPP Pljevlja project, Gov negotiates A2A stay in Power utility EPCG

24. October 2014. / SEE Energy News

Construction of a new unit in Thermal power plant in Pljevlja is the most contentious point in the negotiations between representatives of the Italian company A2A and the Government which was held last week. The reason for the meetings is five- year management agreement with Italian partner in major state owned Electric Power Industry (EPCG), which expires at the end of the year.

Government’s position is that the second unit of TPP should be built because of the need for new energy facilities, while the Italian side is reserved, because they believe that this is too much investment at a time when EPCG finances still are not consolidated until the end.
The Government said they were ” committed to overcome the outstanding issues between the shareholders in Electric Power Industry of Montenegro, and if the strategic objectives would be agreed, it will be the basis for defining future relations in a mutually satisfactory manner” adding that the key precisely lies in investments related for TPP Pljevlja.

“It was agreed that a joint team should work intensively on defining optimization models of thermal-energy complex in Pljevlja, and the reorganization of the Thermal power plant and coal mine, according to the model that will serve to the most effective implementation of Unit 2”, stated from the Government and added that there also were words on the problems in the relationship between the Government and A2A in the period of application of the Treaty on EPCG.

The two sides will, as stated, redefine relations, “particularly with regard to the organizationof thefuture management”, which will also be the subject of meetings of expert teams of the Government and A2A during the next week.

The issue of supplying the Aluminum Plant and other major consumers has also been the subject of the meetings. The Government considered that the electricity price for KAP is too high, which with the cost of the transfer is more than 50 euros per megawatt hour, and that such prices for the industry can be an obstacle to its revival.

Djukanovic met with the leadership of A2A

Partnership between the Government and A2A has good prospects, evaluated the Prime Minister Milo Djukanovic and the leadership of the Italian company.

From the Government’s Bureau of Public Affairs announced that Djukanovic and Giovanni Valotti and Luca Valerio Camerano, president and executive directorof A2A, said that it would be carefully analyzed all the issues of current cooperationby the end of the year, with the belief that it would lead to further discussions of its renewal.

At the meeting it was also discussed on the contractual obligations implementation in Electric Power Industry(EPCG), and interlocutors said they were satisfied with the partnership, with reference to certain weaknesses in the previous period.

The meeting was also attended by the Minister of Economy Vladimir Kavaric and the President of EPCG Management Board, Branko Vujovic.

Montenegro is a priority for the new management

The members of the new company management, the president Giovanni Valoti and executive director Luka Camerano attended the negotiations in front of A2A.

The Government announced that the visit to Podgorica is the first international activity of the new leadership of A2A since their appointment in June of this year”which is a confirmation of the importance which company A2A gives to the project in Montenegro”.

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