Intensified negotiations between EPCG and Škoda Praha

Direct negotiations between EPCG and the Czech company Škoda Praha, the first ranked bidder for the project of construction of TPP Pljevlja – Unit II, have been intensified in the last few days. Upon Belgrade meeting of the two delegations that took place in the middle of this month, representatives of Škoda Praha visited Montenegro in the past days and attended several meetings in Podgorica and Pljevlja.

Adjustment of elements required for contract signing, which is expected in December, develops as planned taking into account the fact that technical-technological conditions were mainly agreed based on conditions which Elektroprivreda Crne Gore has set in the past for all the bidders. Consequently, the continuation of negotiations will be focused on financial and legal aspects.

“Negotiations go in three directions - legal, commercial and technical. Negotiations dynamics develops in line with previously established technical-technological agreements, all for the purpose of obtaining the only energy entity compliant with all the European electricity regulations as well as providing Pljevlja with energy source that will guarantee use of heat for town district heating”, says Luka Jovanović, director of TPP Pljevlja.

Luka Jovanović

Richard Kuba, Project Leader representing Škoda Praha, said “We received letter of intent from Elektroprivreda Crne Gore in June this year and we have started negotiations in three different directions since – on technical and contractual details, as well as legal aspects related to acquisition of different construction licences. We are pleased with dynamics of negotiations; they have gained full intensity and all of this represents a very good beginning of the project”.

Richard Kuba

What is currently being mostly negotiated are financial conditions as well as the amount of the offered price, in order to reduce the originally offered price of €338.5 million.

The new unit of TPP Pljevlja shall satisfy in total all the European standards related to the environmental protection and ensure compliance with all the emission limit values in line with 2010/75/EU Directive.

As regards the project of district heating of Pljevlja, the new unit of TPP Pljevlja should represent the source of heat for the needs of the town's district heating system.

Representatives of "Škoda Praha" in control room

Just to remind that the agreement comes into effect only upon the final confirmation of the project financial feasibility, as well as upon obtaining necessary financial resources.

Having in mind that this project is highly important not only for EPCG but also for the state of Montenegro, the new interstate agreement is planned to be signed by the Czech Republic and Montenegro before this agreement comes into effect, so as to ensure much easier implementation of the entire project.

Taking a tour trough TPP's facilities

Following signing of the interstate agreement Montenegro's Government shall submit it to Montenegro's Parliament for adoption and negotiations about the agreement on execution of works shall be conducted simultaneously with alignment of the wording of the interstate agreement.