Details of the contract between Government and A2A no longer secret

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Vice Prime Minister Vujica Lazović passed today a Resolution to end data secrecy on the material Information on results of negotiations between the state of Montenegro and A2AA with the draft of stakeholders contract. New contract brings a few new articles. Montenegro and Italy are renouncing their arbitrage, EPCG is to be a guarantee, and A2A has an exit strategy, meaning that should it not support Block II construction, it can step out of the project. The state is then to receive A2A’s shares. The final word will be given by the Parliament.

The Information states that the Government is ready to continue cooperation under the condition of uninterrupted activities and support A2A on implementation of key investments, especially construction of Block II TE Pljevlja.

In the case that A2A fails to meet certain articles of the contract by the end of the year, the state will take over their shares for 250 million EUR.

“Should the circumstances that influence the implementation of the contract change, such as indecisiveness in Block II construction or contract expiring on December 31st of 2016, the shares will cost the state of Montenegro 250 million EUR, to be paid in seven yearly rates (54.785.075 shares)”, the Information reads.

Montenegro and Italy renounced their arbitrage.

The new contract would be in force until December 31st 2016 and it represents an instrument for agreeable regulation of final relations, whether it is continuation or termination of cooperation with A2A.

A2A will continue to have say in management of EPCG based on conditions of the contract.

A2A will have the right to suggest key managers and executives, in agreement with the Government.

After signing the contract, A2A has a right to vote differently on any matter that it supported before the day of the signing.

Project in Pljevlja will be implemented by EPCG with a corporate guarantee.

A2A has a right to sell their shares to the third party should the state refuse to buy them.

In agreement with Montenegrins side, A2A has suggested two executives who are Montenegrin. That accomplished Government’s goal of having more control over the work of management.

“Keeping in mind that the contract contains articles that define the exit strategy in the worth of 250 million EUR, the Government is obliged to send the contract to the Parliament of Montenegro for the final word”, the Information reads.

Source: Cafe Del Montenegro