Czech company Skoda Praha will not build the Block 2 of the Pljevlja Thermal Power Plant (TE), CdM learns.
Ivan Mrvaljevic, executive manager of the Directorate for Development and Engineering in the Electric Power Company of Montenegro (EPCG) confirmed this at today’s press conference.
As Mrvaljevic pointed out, the reason for the termination of the cooperation is Skoda Praha’s inability to execute this project within the conditions set by the contract, ie the fact that even a year after the withdrawal of the Czech Export Bank from the project, the partner did not provide an acceptable model of financing the project.
“Skoda Praha has not delivered satisfactory offer and the Steering Committee of the TE Block 2 construction project has decided to terminate cooperation with the Czech company on this project,” said Mrvaljevic.
He makes it clear – EPCG does not give up on the project although it could not agree with Skoda Praha after a year of negotiations.
“EPCG remains committed to valorise Pljevlja’s energy potential and provide Montenegro with a new thermal power plant. Accordingly, the decision should not be seen as giving up the project. EPCG’s investment plan stays focused on the Block 2, which will ensure long-term system stability and reliable power supply. By January 2018, we will offer the government an alternative solution,” said Mrvaljevic.
He particularly emphasized that EPCG had decided to urgently start the project of complete environmental reconstruction of the TE Block 1. The project is €40m worth.
“The existing TE Pljevlja block will be reconstructed according to environmental standards by 2021. The scope of the project includes the construction of a desulphurization system, denitrification, improvement of the operation of electrolytic power plants, construction of a waste water system and reconstruction of the system for transportation of combustion products,” he said.
In order to completely eliminate the negative consequences of delay in implementation, EPCG decided to start to urgently launch the project of ecological reconstruction of the TE Block 1 and directly help the project of city’s heating system project based on the thermal power plant as the primary source of heat.
Economy minister Dragica Sekulic points out that despite the fact that the agreement with Skoda Praha could not be reached, the government must think about the citizens and their safe power supply.
“We could not wait anymore. For the ecological block, €40m will be provided,” Sekulic said.
Asked how the termination of the deal with Skoda Praha will affect the operation of the Pljevlja Coal Mine, Sekulic was clear.
“There’s nothing to do with the mine. There will be no threat to the business of anyone,” she added.
