Montenegro: Contract for the construction of second unit at TPP Pljevlja signed

, SEE Energy News

Contract for the construction of second unit at TPP Pljevlja worth 324.5 million euros between Montenegrin power utility EPCG and Czech company Skoda Praha has been signed today in Pljevlja. The signing of the contract marks the completion of a two-year period of negotiations and this will be the first major energy facility to built in Montenegro in the last 35 years.

The agreement on the construction of second unit was signed by the CEO of EPCG Tonino Maglio, Vice President of the Board of Directors of Skoda Praha Martin Pohlodek and the Chairman of the Board of Directors Peter Bodnar. The signing ceremony was also attended by Montenegrin Prime Minister Milo Djukanovic, Deputy Prime Minister Vujica Lazovic and Minister of Economy Vladimir Kavaric.

Minister Kavaric said that after the completion of second unit of TPP Pljevlja, Montenegro will no longer depend on electricity imports and the production of electricity will no longer depend of weather conditions. He pointed out that new unit at TPP Pljevlja will enable safe supply of the needs of the country’s growing economy, and ensure the operation of TPP and coalmine Pljevlja in the next 40 years.

Last year, the Government selected the offer of Czech company Skoda Praha as the best on public tender for the construction of the second unit at TPP Pljevlja. Skoda Praha offered to build 254 MW unit for 338.5 million euros, and to secure a loan for 85 % of the required investment. However, due to the request for additional works, the cost offered by the Czech company increased to 359.4 million euros, but the Government managed to lower the price by some 25 million euros through the negotiations, so the final price is 324.5 million euros.