Funding for Bloc II of TE Pljevlja will be easily secured

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EPCG will easily secure the money that will be used to finance Block II of TE Pljevlja, it was said from this company.

“EPCG is fully liquid and it has more than 200 million EUR On its accounts, so the resources for TE Pljevlja will be easily procured”, EPCG said to Pobjeda.

The Contract on construction of Block II of TE Pljevlja is worth 324 million EUR, and it was signed between EPCG and Škoda Praha from Czech Republic in Pljevlja on Thursday.

According to the contract, financials will be secured 30% from investor’s resources and 85% from financials institutions provided by Škoda Praha.

Should the institutions provided by Škoda Praha fail to gather investments, they will be paid from the sources of first investor.

EPCG stated that, according to international financial standards, only after the contract has been signed can the negotiations with financials institutions that are funding the construction be finalized.

“After the contract has been signed, working meeting with Czech financials institutions was held”, it was stated in EPCG.

Prime Minister Milo Đukanović said that EPCG is a powerful system today that has significant free capital available in Montenegrin banking system that guarantees that the project is not dependent on any banking credits.

“Of course, we will attempt to build from banking credits as is often done in the modern world, but this will not be a prerequisite of the project. I believe preliminary construction will begin soon, without waiting for the matter of closed financial construction to be finalized”, Đukanović said.

Project managers dealt with financial construction as well as contract preparation, international agreement and feasibility study, so the negotiations with banking consortium that is supposed to finance the projects are well on the way.

EPCG stated that the Contract on Block II construction has historical meaning for Montenegro because this will be the first energy facility built in the last 35 years.

Source: Cafe Del Montenegro