Montenegro: Siemens seeks 14MEUR & delay for the substation construction in Lastva

Published on 17. October 2014., SEE Energy News

Siemens has recently identified a problem with land at which should begin the construction of Lastva substation, and that is the reason why it submitted a letter to CGES seeking the contingency to be resolved as soon as possible. Lasta substation is important for the underwater power cable connection with Italy.

Problem with soft land at which would not be safe the facility construction could delay the start of substation construction in Lastva. As unofficially finds out, due to poor concept design in terms of geology, given by Elektroprenos TSO Company, company Siemens, which is responsible for the substations construction, asked for an extension of time of 500 days for construction and additional 14 MEUR. The main problem, as DN finds out, represents the land in Lastva, which is not suitable for the substation construction, so it must be dig up and moved, and the whole place have to be strengthened with stone.

From the Montenegrin Electric System (CGES) confirmed that there were some irregularities in the field designated for the city-it substation.

“The project of building Lastva substation was prepared and agreed in accordance with the international rules (FIDIC). In accordance with the rules of the bank that approved a loan for this project, CGES engaged a consulting firm, or engineer, whose role is to perform formal communication with the contractor (Siemens Vienna) and to impartially interpret the possible controversial situations that often occur in the realization of such complex projects. In this case, Siemens identified potential problem on the field and in accordance with the procedure sent letter to CGES and consultant, which are under evaluation phase of this document. According to the rules, regardless of the event, activities on this project take place according to the fixed dynamics”, said in CGES.

That there was an unforeseen circumstance, it was announced from the company Siemens. However, on the question whether they requested additional time or money to realize project, from Siemens did not want to answer. ‘”All the activities are implemented as it was planned by agreement. How it came to some circumstances that could be treated as unforeseen, Siemens and CGES will resolve them in accordance with the contract and in a spirit of good partnership”, emphasized from Siemens.

As claim from Siemens, the subject of the contract signed with CGES is construction of substation 400/110/35 kV Lastva -phase I and expansion of the existing substation 400/220/110 kV Pljevlja 2 and an annex to this contract was not sought.

“CGES has completed its obligations of advance payment, settlement of property- legal relations and enabled Siemens the undisturbed use of the site predicted for the construction of Lastva substation. Siemens, also in accordance with plan, implements activities related to the design, which include geological land survey, design and construction of electrical part of the facility”, explained Siemens.

According to the plan, substation in Lastva Grbaljska will transmit the electricity via a 400 kilovolt transmission line to Pljevlja and 500-kilovolt optic submarine cable to Italy. From CGES in March said that the substation construction in Lastva would begin in late April, but the project realization has not occurred yet. Shortly thereafter, CGES director Ivan Bulatovic said for the newspaper Electric Power Industry that the substation construction would begin in May, and the construction did not begin again for unknown reasons.