Montenegro: Large hydrological projects stopped due to the lack of investors interest

, SEE Energy News

The projects of large hydropower plants construction in Montenegro completely stopped because none of the mentioned investors ask for the HPP construction on Moraca, and for HPP on Komarnica there are potential geological problems with the land that should be investigated. As things stand now, the second unit of TPP in Pljevlje will be the first new large electricity source that will be built in Montenegro after more than three decades. Regarding HPP on Moraca, one tender was unsuccessful at the end of  2011.because no one of the potential investors did  not sent offer for a power plant construction at a lower elevation of the  largest HPP  on Moraca- Andrijevo.

In the meantime, the Ministry of Commerce negotiated with other potential investors from Italy, Turkey, Azerbaijan and China about submission of their offers for the construction of HPP on Moraca. For this purpose, relevant documentation for HPP on Moraca was submitted to all, but of these potential investors no offers were received, not even any request for clarification of the documentation, stated in the government information adopted this summer.

According to the existing technical documentation of  Montenegro power utility company EPCG, Moraca hydropower plants system includes four facilities: HPP Andrijevo, HPP Raslovici, HPP Milunovići and HPP Zlatica, with the total installed capacity of 238 MW and an estimated average annual production of 694 GWh. Planned period for all four plants construction is six years, and the estimated total cost of about 540 MEUR.

As far as HPP Komarnica there are problems with land geology. EPCG informed the Ministry of Commerce that there is a serious problem with the land on which the dam has to be rely, whose size and way of dealing with will be known only after revision of the Final report, which will also have an impact on the supply of potential investors. The Power Utility Company of Serbia agrees that the documentation which was made or will be made in accordance with the Agreement on the joint financing, EPCG can submit to potential investors of HPP Komarnica.

Meanwhile, the Ministry of Economy negotiated with other potential investors from Italy, Turkey, Azerbaijan and China (Sinohydro Corporation Limited) about submission of their offers for construction of HPP Komarnica. For this purpose, the appropriate documentation for HPP Komarnica was submitted to the potential investors. The most serious discussions were held with the Chinese company Sinohydro Corporation Limited, from which it was received the information that the offer cannot be prepared without the Final Report of the geological exploration works. HPP Komarnica was planned as peak hydro power plant with the accumulation in the confluence of the Piva River, with the dam at the end of slowing down of the existing accumulation of HPP Piva. Hydroelectric power plant would have a reservoir with capacity of 260 million m3 with normal elevation of 816 mnm, the arched concrete dam with height of 176 m, the dam operating hall and two aggregate with installed capacity of 168 MW and average annual production of 232 GWh. Planned construction period is six years, with estimated costs of approximately 183 MEUR. On the other hand, for the construction of the second unit of TPP Pljevlje there is interest of several companies within which the most serious offers are  Chinese and company Skoda Praha, and which will get the job it will be decided by the end of September.

Source; Serbia Energy See desk/EPCG