Montenegro: Czech Skoda to start works on construction of new TPP Pljevlja power plant

, SEE Energy News

Montenegrin Deputy Prime Minister Vujica Lazovic said that the Government has approved the agreement with the Italian company A2A on the management of power utility EPCG.

The new agreement provides several new articles, both the Government and A2A have waived their right for arbitration and A2A has an exit option, namely if the company does not support the project for the construction of second unit at TPP Pljevlja it could withdrew from EPCG and sell its stake to the Government. Deputy PM Lazovic stressed that through negotiations the Government succeeded to lower the purchase price of A2A’s stake from initial 500 million to 250 million euros, which could be paid in seven annual installments.

He did not disclose the final price offered by the Czech company Skoda Praha for the construction of second unit at TPP Pljevlja, but stressed that Montenegrin negotiation team managed to lower the price by several tens of millions of euros. Currently, Skoda’s final offer stands at 325 million euros, but Montenegrin experts consider that the final offer should be 321 million euros.

Montenegrin Prime Minister Milo Djukanovic said that if the agreement with Czech Republic is approved by the Parliament by the end of July, the construction of the second unit at TPP Pljevlja could start this September, transmits