Montenegro: Gov & A2A to extend temporarily JV management in Energy company EPCG

, SEE Energy News

According to the previous course of negotiations between the representatives of the Government and the Italian company A2A about the management in the Electric Power Industry, the final solution to the problem is far away.

At this moment, both parties are about to make a compromise, which means that the current Management Agreement should be extended until July, and that A2A would not block the construction of the second block of the Thermal Power Plant in Pljevlje. The current Management Agreement expires on Tuesday, 31st March.

As a sign of good will of A2A, the financial bids of the companies interested in building the second block were opened yesterday. These bids have been on ice since May last year. Škoda Praha is prepared to build a Thermal Power Plant with the capacity of 254 megawatts and the electrical efficiency of 39.5 percent for 338.5 million euros. The Chinese company CMEC is offering to build a bock of 250 megawatts with the efficiency of 39 percent for 326 million euros.

Both companies are prepared to find a creditor for the Electric Power Industry from whom they would borrow the money for the construction of this energy facility.

The Government has announced several times that the construction of the second block is a priority, because the first block must be finally closed in six years at the latest. On the other hand, the Italians are asking that a third partner who will participate in the funding of the construction of the second block be found.

The representatives of A2A are basing their opposition on the fact that they have not succeeded in returning even a part of the 430 million euros invested in the Electric Power Industry and the Coal Mine Pljevlja.

The Bids Opening Committee has announced that Škoda Praha and CMEC have submitted draft agreement proposals and final bids in which they have stated that the performances of the projects are in accordance with the defined preliminary design and that they are ready to provide favourable credit funds amounting to 85 percent of the total required funds, with the 20 million-worth technical and ecological rehabilitation of the existing block.

„The potential partners specify that the new block will comply with all most demanding conditions of modern technology (BAT), the good practices of European countries and the environmental protection according to all EU directives“, it is stated in the announcement of the EPCG Tender Committee and it is pointed out that the Evaluation Committee will analyze the financial and technical bids, on the basis of which, by April 2015, they will submit to the Board of Directors of the Electric Power Industry a final proposal on the selection of the best bidder.