Commenting on current events in relation to new contract with the Italian company, passed in the Parliament last night, Del Monaco said that he sincerely hopes that commercial negotiations will not become fuel for running election campaigns.
“A2A is a leading company in this area. They would never sign a contract that breaks law, EU laws, or market laws”, Del Monaco said, stating that he still believes in Montenegro, its market, and its desire to transform into a regional hub of energy sector.
Negotiations between the Government and A2A on cooperation in EPCG, where Italians have 41,7% shares, have been going on for two years. Management contract expired in December 2014, and the relations have been regulated with temporary contracts since. The key issue in the negotiations was construction of Block II of TE Pljevlja. The Government believes in the development of this project, while A2A thinks of it as a pricey investment they did not want to get involved in.
The negotiations resulted in a draft of the contract that entails the construction of Block II, but gives A2A an exit strategy. The draft of the contract has become a subject of discussion in the Government of electoral trust, because representatives of the opposition are insisting that the contract not be passed in the Parliament.
Block II construction will cost 324,5 million EUR
Working team for construction of Block II and representatives of Škoda Prahe agreed that the final price of construction should be 324,5 million EUR. The starting price decreased for 25 million.
“Škoda Praha agreed to this price in accordance with EWA and EPC contracts that regulate construction and planning of this project”, they said in EPCG.
The company made an obligation to respect EU standards for PC technology of coal burning in Block II. The most modern technology is to be used.
Key articles of the new contract
Should A2A use their option of exit, Montenegro will be able to acquire their shares for the price of 250 million EUR paid over seven yearly rates.
A2A has a right to sell the shares to a third party, but the Government has the right to be the first to buy. That means that A2A cannot sell the shares directly to the third party.
A2A renounces their right to arbitrage, while EPCG has a possibility to start arbitrage process in the case of criminal affairs.
A2A has a right to manage EPCG, but with greater responsibilities. Italian company can make suggestions on the management, but the decisions can only be made with an agreement from the Government.
