Kavaric: A2A will give guarantee to EPCG for second block of TE

#Epcg #A2A #TePljevlja #VladimirKavarić #MinistryOfEconomy


If Italian company A2A activates leave option and decides to leave Montenegro it cannot block the decisions that the government is proposing regarding the second block of Thermal power plant (TE), said in an interview to Dnevne newspaper minister of economy Vladimir Kavaric.

DN: Why did the government decide for the new contract with Italian company A2A?

Kavaric: A2A owns 41.7 percent of shares in Electric power company of Montenegro (EPCG) and they are a part of EPCG in any case. It is useful to have an agreement on strategic goals in these circumstances. This was one of government’s goals during negotiations regarding development projects of EPCG. Also, prerequisites are made for the case of eventual separation if they decide to leave Montenegro which are protecting us.

DN: What are the basic principles of the contract with Italian company?

Kavaric: As I said, the second block of TE Pljevlja will be built. A2A will have the right to manage it but will also have to take responsibility for it. The government will have control over the management, and A2A will renounce the arbitration right, while EPCG and the government will have the right for damage reimbursement in case of court processes and responsibilities arising from those. A2A has an obligation of not blocking the decisions that the government proposes regarding the second block of TE Pljevlja evena fter they would activate ‘leave’ option.

DN: How is the right of priority purchase defined, if A2A decides to activate leave option?

Kavaric: A2A has the right to sell the shares to a third party prior to activation of leave option. However, the Government has the right of priority purchase. This means that A2A cannot sell the shares directly to a third party. Prior to this, it has to notify the government of the intention for sale, with clear information about the buyer and the conditions of the sale, and the government will, if not satisfied with the buyer, purchase the shares itself.

Source: Cafe Del Montenegro