INVESTMENTS AND PROFIT MARK OUT EPCG’s 109th ANNEVERSARY

Elektroprivreda Crne Gore marks 109th anniversary of existence and successful operation, in the peak of investments momentum. Investing hundreds of millions of euro in construction of new and reconstruction and modernization of existing sources will increase the generating capacities, extend lifetime and operational readiness and reliability of existing plants, decrease energy deficit and secure power supply of customers in the forthcoming several years. Thus we will be ready to welcome all prospective new suppliers as well as preserve the EPCG’s leader position on domestic market, and moreover make a significant stride to regional markets.

EPCG’s Chief executive officer, Igor Noveljić, stated that both the current and the past year were among the most successful business years in the history of the Company.

- In 2018, EPCG Group (EPCG, CEDIS and RUP) made close to 60 million net profit and paid into the State’s budget approximately 100 M€, on grounds of taxes, surtaxes, contributions, other liabilities and dividends. Moreover, EPCG redeemed 66 M€ worth ownership stake, the Italian Company A2A had in EPCG. Eventually, we launched the investment cycle whereby we would like to secure a high operational readiness and reliability of power facilities and, finally, safety in supply of all electricity customers, pointed out Mr Noveljić.

While significant investments in revitalization and modernization of hydro energy capacities are ongoing, EPCG invests considerable funds in thermal power complex in Pljevlja. 20 M€ worth reclamation of Maljevac landfill has started, and a contract on ecological retrofitting of the existing Unit I, for which 45M€ was earmarked, will be signed by the end of the year. Coal Mine has been seriously engaged in procurement of new equipment.

- By implementing those Projects, the TPP would be producing the electricity at highest European standards without any environmental risks. We would construct the town heating source and donate additional 3 M€ for construction of a primary heating pipeline. It brought me joy that we had achieved the wanted synergy by purchasing the Coal Mine, because it was quite obvious that Coal Mine would achieve the net profit, in the first two years of operating in the frame of EPPG, equal to a half the funds invested in acquisition worth 35 M€, assessed the CEO of EPCG.

Just for reminder, the Ministry of economy of the Government of Montenegro selected our Company to construct approximately 200 M€ worth construction of SP Briska Gora. We made a Preliminary design of the future HPP Komarnica, and following a successful modernization we expect the two SPPs Glava Zete and Slap Zete to start operating by the end of this year. Those two SHPPs operate within the Company ‘Zeta Energy’, which was incorporated as a company with a joint ownership structure with the Norway NTE Company. If the Shareholders’ Meeting, scheduled for the end of August, shows a green light, we will sign a Contract on development of a Wind Park at Krnovo, worth 60 M€, and in September we will be faced with signing a 35M€ worth Contract with KfW, for modernization of HPP Perućica, investments in which will exceed 60 M€, while reconstruction and modernization of units and electro-mechanical equipment in HPP Piva is ongoing under a Contracts worth 15 M€.

EPCG’s anniversary commemorates 19th of August 1910 when Nikola I, the King of Montenegro, made the operation of the first power plant in our country official, at the occasion of proclamation of Montenegro as a Kingdom in castle at Cetinje.