Cooperation with Czech Skoda Praha on construction of Block II of TPP Pljevlja terminated

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    Podgorica, Montenegro (27 December 2017) — Steering Committee of the Project of Construction of Block II of the Thermal Power Plant Pljevlja decided earlier today to terminate the cooperation on this project with the Czech company Skoda Praha, Ivan Mrvaljević, Executive Manager of the Directorate for Development and Engineering in the Electric Power Industry of Montenegro (EPCG) told the press conference… Cooperation with Czech Skoda Praha on construction of Block II of TPP Pljevlja terminated

    Podgorica, Montenegro (27 December 2017) — Steering Committee of the Project of Construction of Block II of the Thermal Power Plant Pljevlja decided earlier today to terminate the cooperation on this project with the Czech company Skoda Praha, Ivan Mrvaljević, Executive Manager of the Directorate for Development and Engineering at the Electric Power Industry of Montenegro (EPCG), told the press conference.

    At its 55th session of 21 December, the Government of Montenegro reviewed and accepted the Information on the status of activities for the Implementation of the Project of Construction of Block II of the Thermal Power Plant Pljevlja and the Project of Environmental Reconstruction of Blok I of TPP Pljevlja. On that occasion, the Government tasked the Ministry of Economy to send the necessary instructions to the Electric Power Industry of Montenegro and the Steering Committee of the project made decisions regarding this.

    As Mrvaljevic pointed out, the reason for the termination of the cooperation is the Skoda Praha’s impossibility to carry out the project under the contract, that is, the fact that even a year after the withdrawal of the Czech Export Bank, the partner did not provide a viable project financing model. Despite significant efforts made by both negotiating teams in the past period, an agreement on the technical and financial modality has not been reached.

    He stressed that the EPCG remains committed to exploiting Pljevlja’s energy potential and providing Montenegro with a new thermal power facilities. Accordingly, the decision should not be seen as a withdrawal from the project, as the EPCG investment plan remains focused on the block that will ensure long-term system stability and reliable power supply. However, in Mr Mrvaljević’s words, after observing the list of outstanding issues, which, despite the efforts and perseverance of all involved parties, were not harmonised, primarily because of the fact that even a year after the cancellation of the financial support from the Czech Export Bank, the partner did not provide acceptable model of financing, the committee concluded that the continuation of the project’s implementation should be based on the second starting point.

    He especially stressed that the EPCG decided to start an urgent procedure of launching the project of complete environmental reconstruction of the Block I of the Thermal Power Plant worth EUR 40 million.

    Existing Block I of TPP Pljevlja will be ecologically reconstructed until 2021. The scope of the project includes the construction of a desulphurisation system, denitrification, improvement of electrolytic power plant operation, construction of a waste water system and reconstruction of the transport system of the products of combustion.

    Ivan Mrvaljević of the EPCG informed the public that, in order to completely eliminate the negative consequences of delay in implementation, the EPCG decided to start an urgent procedure of launching the project of ecological reconstruction of the Block I of the TPP Pljevlja and directly help the city’s heating system based on the thermal power plant as the primary source of heat.

    PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO

    Source: Government of Montenegro