EPCG can build another TE block on its own

Electric Power Company (EPCG) has a significant amount of available resources and it could take a loan to build the second block of the thermal power plant (TE) Pljevlja on its own, said Deputy Prime Minister Vujica Lazovic.

“If we don’t find a third partner by the end of March, the one who would co-finance the construction of the second block of the thermal power station, we will surely launche the project on alone, without the Italian company A2A. In this respect, an adequate financial structure within is in making in EPCG and the government”, said Lazovic after the signing of the Framework Agreement on economic and technical cooperation with China.

He reminded that the Government partner in EPCG, Italian A2A, sought the inclusion of a third partner in the completion of the financial structure for the construction of the second block, as one of the models of realization of the project which would be acceptable to them.

“We accepted it conditionally, but made it clear to them that we intend to, regardless of the completion of talks with A2A, build another block, not only because we will have to close the first in the coming years, but also because balancing of the electricity system will be necessary for us”, said Lazovic.

He added that finding a third partner is the primary task of A2A, whose representatives have suggested it, saying they have some potential partners. He said that the government will accept the communication if any of interested investors shows up.

Lazovic said that the government has no offer to purchase the shares of the Italian A2A in EPCG, but that will surely think about it, if it does happen.

He said that there are speculations that A2A was ready to sell its shares in EPCG at a price lower than the one they were paid, which would be a good job for the government.

“I think this will not happen because it is also important to them in strategicall sense to be present in the area which is entering a phase of significant energy development”, said Lazovic.

Representatives of A2A earlier announced that at the end of December they reached an agreement with the Government about staying in EPCG, but it won’t be until spring before the details of further cooperation, including the search for a third partner, are to be worked out.

Management of the Italian company stated that they are “moderately optimistic” regarding the will of the Montenegrin Government and A2A to continue cooperation started in 2009.

They also announced that they will insist on conditions that are set during the negotiations held in December.

In previous negotiations, construction of the second block of the thermal power station was the most controversial part of continuing cooperation in EPCG, in which the state has a majority ownership, and it is managed by A2A.

Government seeks to build the second block while the A2A felt that it was no time for such an investment. They later sought the possibility of the money for that investment to be provided by a third partner.

Izvor: RTV Montenegro