Negotiations on cooperation in Montenegrin Electric Power Industry continue

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Podgorica, April 3, 2015/ Independent Balkan News Agency

By Adnan Prekic

Government of Montenegro and Italian company A2A, as two leading shareholders of the Montenegrin Electric Power Industry, have agreed on the interim agreement for a period of three months in order to regulate mutual relations following the expiry of the contract. According to the agreement, the A2A will continue managing the Montenegrin Electric Power Industry in the same way it was set out in the agreement that expired on April 1.

The agreement does not constitute an extension of the EPCG agreement and it is a completely new and independent agreement between the State of Montenegro and the A2A. It aims to create a further negotiations framework on the conclusion of a new EPCG agreement, as well as the provision of undisturbed further activities necessary for the completion of the Block II of the Thermal Power Plant Pljevlja.

The Montenegrin government wants to build a new energy facility at any cost, while the Italians are not willing to invest, proposing instead a model that includes the introduction of a new partner. If they do not reach an agreement, the minority package of 42% Italians stocks will be offered to the Government of Montenegro.

The partnership of the Montenegrin government and the Italian company A2A expired at the end of 2014. Despite that, the government has given Italians a deadline until April 1 to state their intentions on the construction of the second block of the thermal power plant. Prime minister Milo Djukanovic said that the government will not prolong cooperation with the italian company A2A if they for any reason do not support the construction of another thermal power plant in Pljevlja.

The government’s call for the construction of the second block of the thermal power plant Pljevlja was answered by the companies: the Czech company “Skoda Praha”, two Chinese companies – “Powerchina Hubei Electric Power Survey & Design Institute”, “China Machinery Engineering Corporation” (CMEC) and the Slovak company “Istroenergo Group”. The development plan envisages that the second block of the thermoelectric power plant Pljevlja will be 200-300 MW and will be built on the site of an existing power plant. The project will provide town heating, in cooperation with the municipality of Pljevlja.

Source: Independent Balkan News Agency (Montenegro)