Montenegro: Reconstruction contract for TPP Plevlja

, SEE Energy News

Reconstruction contract of coal-based thermal power plant Pljevlja was signed by Montenegrin state-owned power utility EPCG and a consortium led by Chinese Dongfang Electric Company (DEC).

In November, state-owned power utility EPCG announced that it has selected a consortium consisting of Dongfang Electric Corporation (DEC), Bemax, BB Solar and Permonte as a contractor for the environmentally oriented reconstruction of TPP Pljevlja. The deadline for the completion of works is 39 months for the date of signing the contract. The selected consortium offer to perform the reconstruction for around 54.4 million euros including VAT, while the offers by two other bidders were significantly higher: Shanghai Electric Group offered 97.9 million euros and Hamon-Rudis consortium offered 72.5 million euros.

CEO of EPCG Igron Noveljic said that this reconstruction will extend the operational life of TPP Pljevlja by 30 years. It is crucial that, after the completion of the project, the impact of the thermal power plant on the environment will be reduced to a minimum, in accordance with the strictest EU environmental standards. The operation of the thermal power unit in Pljevlja is of crucial importance for the economic and social development not only of EPCG, but also of the northern region and the country as a whole.

EPCG launched the public tender for selection of the contractor for the environmental reconstruction of TPP Pljevlja in July. Estimated value of the investment is set at 45 million euros (without VAT) and a large number of renowned global companies experienced in implementation of similar projects is expected to participate. It is planned that the contract should be signed by the end of the this year. The preliminary design for the environmental reconstruction was prepared by German company STEAG Energy, through cooperation with the management of the plant. Project implementation is scheduled to take place in the period 2019-2021, after which the operation of TPP Pljevlja will be enabled to continue for at least 20 years. Reconstruction will assure compliance with the requirements and adherence to the strictest environmental protection parameters as envisaged under the latest EU Decision 2017/1442. The environmental reconstruction project includes the construction of the desulphurization system, denitrification system, enhancement of ESP operation as well as development of the waste water treatment system. Revitalization of Maljevac landfill valued at additional 20 million euros will take place concurrently. Close to 9 million euros was already spent on the project for revitalization of the landfill in the last year. The reclamation of the landfill will take place in stages between 2019 and 2023.