Podgorica, Montenegro (15 October 2015) – The Government of Montenegro and Italian-based A2A company have reached an agreement on the basic elements of future cooperation and the extension of cooperation once the shareholders’ agreement in the Electric Power Industry of Montenegro (EPCG) gets signed towards the end of the year, Minister of Economy Vladimir Kavarić told the press conference earlier today. Meanwhile, the interim agreement, which was extended at today’s Cabinet session by endorsing the Interim Agreement Annex, will be in force.
Both sides agreed on the obligations, dynamics, and financial framework for the construction of the Block II of the Thermal Power Plant Pljevlja, as one of Montenegro’s major development projects in the energy sector. The Government’s representative within the Board of Directors of the Electric Power Industry of Montenegro (EPCG) will coordinate the implementation of the Block II project, Minister Kavarić explained.
He added that the drafting of a business plan has also been arranged, which will be a backbone for measuring the EPCG’s future performance.
The Economy Minister pointed out that the Government and A2A have also agreed on a put option for A2A’s investment worth EUR 430 million at the time of entering the EPCG in 2009. A2A is eligible to initiate this option in certain specific circumstances, and in that case Montenegro would be ready to pay EUR 250 million in seven annual instalments for the A2A shares in the EPCG, Minister Kavarić noted.
The essence is that A2A is staying and not leaving Montenegro, he stressed.
“All this will be more precisely defined by the shareholders’ agreement, which is expected to be signed by the end of the year,” Economy Minister Kavarić concluded.
Source: Government of Montenegro