Second tender for KAP brings only one offer

Second tender for KAP brings only one offer


By Adnan Prekic – Podgorica

On the re-tender for the sale of the assets of the Aluminum Plant, the biggest industrial plant in Montenegro, only one bid has been received. The local businessman, Veselin Pejovic, has offered €28 million for the property of the once great industrial giant.

The owner of the company “Uniprom” has offered to purchase the assets of KAP for €28 million. The offer also referred to an investment of the company in the amount of €76 million up to 2018.

However, the most important issue is the price of electricity that the owner will have to pay in the future, which for now remains the biggest problem. Pejović’ offer includes the clause that the price of electricity will not go above €38 per megawatt. If the condition is met, the Monetegrin businessman announced the launch of the electrolysis plant of raw aluminum and employment of at least 300 workers.

On the second tender there was no offer from the German consortium HGL. This reputable company had on the first tender for property plant offered just €5,000, and an investment of €700 million. However, the Germans did not have a bank guarantee for the  announced investments, that’s why their bid wasn’t considered.

Bankruptcy management of the Aluminum Plant will consider the offer of “Uniprom” and announce its decision within eight days.

In 2005, the Montenegrian Government had sold KAP to CAEC company, which stands behind RUSAL, owned by Russian tycoon Oleg Deripaska. From 2005 to 2013 KAP was managed by CAEF. In 2013 KAP fell into bankruptcy and created a debt of around €360 million. The Government of Montenegro tried to save the production of KAP, (they issued a government guarantees of €120 million as a loan to the Russian owner, to try to continue production) in 2008. The loan was never refunded, but last year the government was forced to pay a rate of more than €100 million in credits to KAP from the state budget. This situation caused a major political unrest in the country.