Montenegro:A2A seeks co-investor for the second unit of TPP Pljevlja

5. January 2015. / SEE Energy News

Italian company A2A would agree that Electric Power Industry of Montenegro EPCG to be an investor for the second unit in Thermal power plant in Pljevlja, only provided that it invests 49 percent of the amount required for the construction of this facility. A2A is co-owner of energy company EPCG together with Montenegro government.

For securing the remaining 51 percent of required capital they should seek a new partner, learns Pobjeda. According to unofficial information of Pobjeda, this is the result of previous negotiations between A2A and the Government, who are currently discontinued due to Catholic Christmas and New Year. A2A has entered into negotiations with the decision not to accept the participation of EPCG in the second unit construction of the thermal power plant, because so far they have not managed to regain even a fraction of their investments in the Electric Power Industry, which amounted to 430 MEUR in 200 9. As, however, the negotiations proceeded, and at the insistence of Prime Minister Milo Djukanovic, the Italians have revised attitude. The problem, however, is to find a partner for much of the investment in the new energy unit at Pljevlja.

It is about the sum of 277, or 356 MEUR, and that is the amount for which the Chinese and Czech companies would built the unit. The offer of the Chinese Company Hubei Power is lower, while the Skoda Praha would do the job for 356 MEUR. Both companies are willing to provide loans to investors at their national banks.

If A2A, which has 41.7 percent share in EPCG of the state of Montenegro with 55 percent of the capital, find a co-investor, this would imply the separation of existing thermal power plant of electricity and connection with the Coal Mine Pljevlja in one company. This would imply a change of ownership, according to new investment partners.

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