Montenegro: Negotiations on the construction of TPP Pljevlja continue, deadline passed without agreement

6. January 2016. / SEE Energy News

It was announced from the Government that they would make a deal with Škoda Praha regarding the construction of TPP till December 15. The Government agrees that EPCG can be the guarantee for the loan at the Czech Export Bank, but they need A2A to agree as well.

A deal with the company Škoda Praha regarding the construction of the Second unit of the thermal power plant Pljevlja was not achieved last week, even though it was announced from the Government that it would be done by December 15.

After the meeting with the Czech, it was announced from Elektroprivreda that the working group that was in charge of the project of the construction of the Second unit of TPP decided to divide the design and construction contract into two parts, the main project design contract and construction contract.

In EPCG they told us that technic and technological terms were mostly agreed upon, and that the focus of further talks will be the financial aspect.

“After the intense and direct negotiations between the Montenegrin working group (The Government, EPCG and Pljevlja mine) and the Czech company Škoda Praha, the concept and all the basic elements of the contract regarding the services of creating the main project have been defined. Compared to the initial terms proposed by the Czech company, the working group has significantly improved those terms“, the announcement says.

The ratification of the international agreement with the Czech Republic is the precondition to signing this contract. The Government prepared a draft of the international agreement and informed the European Comission. After the adoption of the international agreement, the Government will send it to the Parliement for ratification. From EPCG they said that they have agreed upon the term sheet which will be the base for the final construction contract of the Second unit of TPP, and the financial intitution willing to support this project will be included in the negotiations.

„Apart from the international agreement, finding a finacial institution which will provide the loan is also the precondition for the signing of this contract. Generally it was agreed between the Government of Montenegro and the strategic partner A2A to go through a SPV“, they say from EPCG.

The agreement with the Czech, who are requesting 350 million euro for the construction of the Second unit, should be made in the next weeks.

The Government agrees that EPCG can be the guarantee for the loan at the Czech Export Bank, but they need A2A to agree as well, transmits Serbia-energy.eu

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