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The Czech company Skoda Praha-contracted the job of building power plants in Montenegro

The Czech company Skoda Praha-contracted the job of building power plants in Montenegro
Podgorica, May 4, 2015/ Independent Balkan News Agency

By Adnan Prekic

The Czech company Škoda Praha placed the best offer on the international tender issued by the Montenegrin government and as a result was assigned to build another block of thermal power plant in Pljevlja. The Board of Directors of the national electricity company has decided that the Czechs offer was more profitable than those submitted by the one Chinese company.

Construction of the new power plant is one of the priorities of the government of Montenegro. It has been more than 30 years since a major energy facility has been built in Montenegro. The construction of the second block of the thermal power plant Pljevlja has been a subject of dispute between the Montenegrin government, which has a majority ownership in the energy company and the Italian partners, the company A2A.

Among the nine offers for the construction of the thermal power plants, the offer of the Czech company Skoda Praha was found to be the most profitable. The Czech company is willing to construct a thermal power plant of 254 megawatts with an electric efficiency of 39.5 percent, for 338.5 million euros. The second-ranked offer was from Chinese company CMEC. The Chinese have offered to  build a block of 250 megawatts, with efficiency of 39 percent for 326 million euros. The annual production of electricity, according to the Skoda Praha offer "would be 1,600 GWh, and the project envisages the thermal station for providing energy for the heating of the district of Pljevlja".

At the end of the 2014 expired the partnership agreement between the Montenegrin government and the Italian company A2A in the state energy company. The Italian company after five years of management did not meet the most parts of the conditions stipulated by contract, but regardless of that fact, the intent of the Montenegrin government is to retain partnership with the Italians.

The most controversial part of the negotiations is the insistence of the government that the Italians, during the next period, incorporate in their business plan the construction of the second block of the thermal power plant Pljevlja. The Italians insist on stable operating conditions in terms of legal and regulatory attribution, because their goal is to make a profit of at least 430 million euros, which is how much they bought the minority share package.

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, which will be built on the site of an existing power plant. The project will provide town heating, in cooperation with the municipality of Pljevlja.

The construction of the second block will provide a heating system for the city and so the furnace, that is used during the winter season, will consequently cease to operate. This would solve a major environmental problem in the country. The construction of the second block of thermal power plants will achieve a strategic objective in the field of energy in Montenegro, since it will ensure the energy independence of the country, improve the security of supply to consumers and improve the stability and sustainability of the power system in Montenegro, which will position the country as an exporter of electric energy.

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