EPCG WILL HAVE FULL OWNERSHIP OF PROJECT COMPANY GREEN GVOZD

Elektroprivreda Crne Gore signed Shareholder Agreement with the company Ivicom Holding GmbH from Austria on accession to the project company Green Gvozd through which the project of wind farm on Krnovo plateau will be implemented.

According to the Shareholder Agreement, EPCG will be 100% owner of the project company Green Gvozd. By way of reminder, EPCG Shareholders Meeting passed the decision on construction of wind farm Gvozd, as well as decision on signing the agreement on joint project development.

Mr. Nikola Rovčanin, EPCG Chief Executive Officer, expressed his pleasure for continuation of cooperation having in mind importance of this investment for our state and the energy sector, as it belongs to the green energy sources.

'The investment value is 61 million euros, with the capacity of 55,4 MW, 13 generators, and it will provide energy for about 25 000 households. For this reason, signing of the Agreement represents huge step forward in implementation of this investment, which is expected to be completed within the agreed deadline. In terms of our electricity balance, this will significantly contribute to providing of new Gw hours of green energy. Hopefully, we will ensure construction of other new renewable energy sources in the upcoming period', Mr. Rovčanin said.

Passing of the decision on construction of wind farm Gvozd was preceded by development of the Study on wind potential and estimated energy generation, as well as the Study on market and business model for WF Gvozd, developed by the reputable German company Fihtner.

Mr. Krešimir Čondić, CEO of the company 'Ivicom' pointed out that he was satisfied by the fact that cooperation with EPCG would be continued at the same location because his company was engaged in development of the project concerning wind farms at Krnovo. The project was initiated more than two years ago, which was partially disturbed by COVID 19 pandemic.

'Preconditions for construction of a wind farm imply primarily enough wind at the location, the possibility of profitable grid connection, as well as meeting of all ecological standards. I hope that construction permit will be obtained in a couple of months, and financial close for this project and commencement of construction will take place thereafter', Mr. Čondić pointed out.

EPCG earlier received Mandate Letter from the European Bank for Reconstruction and Development (EBRD) for financing the project of construction of wind farm Gvozd. In the upcoming period, EPCG will definitely take into consideration potential different options for the project financing and the funds would be used for procurement of equipment in line with rules of the financial institutions.

Construction of the wind farm is expected to begin in spring 2022, while its trial run is planned 18 months following commencement of works. Construction of transport infrastructure is also envisaged for the needs of the future wind farm, i.e. reconstruction of the existing and construction of the new roads, aimed at connecting of certain wind turbines.