AGREEMENT WITH KFW BANK FOR HPP PERUĆICA’S RECONSTRUCTION AND MODERNIZATION

Elektroprivreda Crne Gore signed an agreement with the KfW Bank tied to the Project of Reconstruction and Modernization of HPP Perućica. A €33 million worth agreement was signed by the EPCG CEO Igor Noveljić and KfW’s Lead Project Manager Bodo Schmuelling.

The Chief Executive Officer of EPCG pointed out at the agreement signing that “Elektroprivreda Crne Gore has put a large-scale 5-year investment cycle in motion last year and its implementation is underway. The reconstruction and modernization of the existing facilities will allow for a stable operation and extended operating cycle of the plants, while introduction of advanced technologies and the latest information control systems will enable their all-encompassing automation and make room for provision of system and ancillary services both to the Montenegrin energy system and the regional market. We are committed to the use of renewable energy sources and, to that end, we intend to build solar and wind power plants. Moreover, installation of eighth unit in HPP Perućica will bring about important volumes of new electricity. Let me thank to KfW team for their professional and technical assistance in obtaining an exceptionally favourable loan agreement for Montenegro.”

From the standpoint of KfW, signing of this agreement represents a continuation of a successful cooperation with EPCG: “Today, we continue a successful cooperation aimed to support Montenegro in ensuring reliable electricity supply from renewable sources and reducing the greenhouse gas emissions. KfW and EPCG are signing a €33 million worth of agreement today which is a part of KfW’s new Programme named ‘Greening Public Infrastructure’ through which KfW ensured the total of €80 million of subsidised loans for Montenegro”, the lead project manager, Bodo Schmuelling stated.

The second phase of the reconstruction and modernisation of HPP Perućica comprises reconstruction and modernization of the hydro-mechanical and electrical equipment of units U5, U6 and U7, hydro-mechanical equipment of the valve chambers, equipment for hydrological and hydraulic measurements, installation of the plant –level integral information system, reconstruction and modernization of civil structures appurtenant to the system – remediation and elevation of the Opačica Canal and reconstruction of the Moštanica Canal.

Executive officer of EPCG’s Directorate for Development, Ivan Mrvaljević said that the tender for the civil portion of works will be published in October/November while the commencement of works is expected in spring 2020. The tender for the entire electrical and mechanical part is to be launched in early 2020 while, according to the plans, the works should start in early fall 2020.

Mrvaljević also announced the project of installation of the eighth unit: “An amount of cca €700 000 from this loan agreement with KfW will be earmarked for development of the project and tender documents for selection of the supplier and contractor for unit U8, whereof rated capacity will be 58.5 MW; the installation of this unit will increase the installed capacity of the plant from 307 to 365.5 MW. The estimated value of this project amounts to approximately cca €23 million”.

The Minister of Economy Dragica Sekulić attended the agreement signing and stated that she is pleased to see that HPP Perućica will celebrate its 60th anniversary next year while undergoing major reconstruction works, adding: “I am particularly pleased about the fact that this favourable loan agreement with the German Development Bank will provide for preconditions for installation of the eighth unit in the HPP Perućica. We are always happy to see increase in capacity of the present hydropower plants with zero effect on the environment. 60 MW stands close to the capacity of a generation facility and it’s the charm of the old plants that make us proud and that may be object of envy of even much more developed countries”.