Opening of Suppliers Proposals related to the project TPP "Pljevlja" Block II

As planned, the working group for the project of the TPP Pljevlja - Unit II opened the Proposals received by Skoda Praha, Powerchina Hubei Electric Power Survey & Design Institute and China Machinery Engineering Corporation (CMEC).

Based on the preliminary economic-technical data, not yet evaluated by the company, the main topics received with the proposal could be summarized as follows:

- Skoda Praha offered construction of the Unit II with the capacity of 254 MW and 39.5% energy efficiency rate, priced at €356.7 million

- China Machinery Engineering Corporation (CMEC), in its introductory documents reveals their readiness to construct a 250 MW Unit II with energy efficiency rate of 39%, priced at €278 million.

- Powerchina Hubei Electric Power Survey states the capacity of 250 MW, 39.2% efficiency rate and the construction price of 277 million euros.

All three companies submitted draft agreements and technical information in compliance with the project design requirements. Under conditions that should still be evaluated and defined, they offered the possibility to access to bank loan up to 85% of the overall funds expected. Technical and environmental rehabilitation of the existing unit has also been considered. The potential partners state that the new unit will be compliant with the best available technology (BAT), good practice of the European countries and environmental protection under the EU directives.

The working group and the Steering committee for the implementation of Unit II Project will have to evaluate the submitted financial and technical proposals in the next period and they will prepare a feasibility analysis for each proposal. Comparison of the feasibility analysis, together with the reorganization plan that will include EPCG and the Coal Mine, that will be finalized in the next months, will be jointly submitted to the Board of the Company for final evaluation.

The State of Montenegro Energy Development Plan foresees the TPP Pljevlja – Unit II should have the capacity of 220-300MW at the location of the existing unit TPP Pljevlja I and energy efficiency of not less than 38%. Once approved by the EPCG under investigation of its economic feasibility development, the construction of Unit II could be part of the strategic development of the energy sector of Montenegro.