The Montenegrin government and Italian company
A2A, as major shareholders in Podgorica-based state-controlled power utility
EPCG, have reached an interim agreement that will allow A2A to continue managing
EPCG in the next three months, the government in Podgorica said.
The move
came after the five-year management agreement between the government and A2A
expired on April 1, the government said in a statement on Tuesday, adding that
the document is not an extension of the previous deal.
The interim
agreement aims to create a further negotiating framework for the conclusion of a
new EPCG deal, as well as to ensure there is no interruption of the activities
necessary for the completion of the second unit at EPCG-operated thermal power
plant (TPP) Pljevlja, which is the most important condition for the continuation
of the cooperation with A2A, the statement said.
If a common solutionfor
the construction of the second unit at TPP Pljevlja is not reached by June 30,
the interim agreement will cease to have effect, the state will take over the
management of EPCG and will continue to implement the TPP project regardless of
A2A's position.
In 2009, A2A signed a deal to acquire a minority stake in
EPCG from the Montenegrin government while taking on a significant role in its
management. The Montenegrin government remains the majority owner of EPCG with a
57% stake while A2A owns 41.75%.
Last week, EPCG said it had unsealed the
final bids submitted by Skoda Praha and by the China Machinery Engineering
Corporation (CMEC) for the construction of the second unit at TPP
Pljevlja.
The Czech company has offered to build a 254 MW unit with
electrical efficiency of 39.5% for 338.5 million euro ($364 million). CMEC has
offered to build a 250 MW unit with an electrical efficiency of 39% for 326
million euro.
Both companies have stated they are ready to secure
favorable credits to cover 85% of the necessary funding and to also perform a
technical and environmental retrofit ofTPP Pljevlja's existing 218 MW unit
worth around 20 million euro.
The commission in charge of assessing the
submitted offers should come up by the end of April with a final proposal for
the selection of the best bidder for the project.
EPCG operates867 MW of
installed generation capacity, including 657 MW of hydro and 210 MW of thermal
power capacity. The utility produced 3,036 GWh of electricity in2014.