New ministers delay contract with A2A

#A2A #Epcg #GovernmentOfMontenegro #TppPljevlja #Contract #ŠkodaPraha #PowerPlant #Parliament #Assembly #Session

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Discussion on results of negotiations with Italian company A2A and the Draft shareholding contract was at yesterday’s government session postponed for their next assembly – on a request that came from the opposition ranks of the Government: Finance Minister Rasko Konjevic, Minister of the Interior, Goran Danilovic, Minister of Labour and Social Welfare, Boris Maric, and Vice President, Milorad Vujovic.

Government’s Bureau of Public Affairs yesterday briefly announced that the reason for postponing is late delivery of needed materials.

The process began on June 13, 2013, with a letter of invitation for proposals, with defined basic technical and commercial requirements for the new power facility within TPP Pljevlja, seeking also favorable conditions for financing, forwarded to 13 companies of reference. Although due to specificity and complexity, the process was not carried out as classic public procurement, all elements of transparency were executed, and all interested parties had access to the same information. This is confirmed by the fact that after Skoda was elected as the best bidder, none of the remaining nine bidders or potential bidders objected to EPCG, or in any way challenged the decision.

In negotiations with Skoda Praha, it was agreed that mutual relations regarding the construction of Block II of TPP Pljevlja be defined through two contracts.

As for the value of the project, contracting parties agreed at the price of 9,890,360 euros, which is much lower than the original 16.925.000 euros from the preliminary offer of Skoda Praha.

The only remaining element is the final value of the EPC contract, which, according to Dnevne Novine daily’s findings, is expected in the coming days. Škoda’s original offer of 338.5 million euros and the additional work required by the Working Team estimated at the value of 10.7 million was to date corrected through negotiations to 324,878,645 euros, which was caused by accepting significant changes to the previously agreed contractual terms. The technical team of the Montenegrin negotiating team who analyzed the price believes that the final offer, which includes previously agreed contractual terms and the total price for both contracts should be 321,685,000 euros.

Source: Cafe Del Montenegro