Press release

Working Team, responsible for implementation of the Project Unit II TPP Pljevlja, for the purpose of acceleration of activities on implementation of the Project, decided to separate the Agreement on Design and Construction in two Agreements, namely: EWSA – Early Works Service Agreement and EPC Engineering Procurement and Construction Agreement. Time schedule regarding harmonization of all elements is being carried out in accordance with the plan, having in mind that technical-technological conditions are mostly agreed, which means that financial aspects will be in the focus of the following negotiations.

Following intensive and direct negotiations between the Montenegrin Working Team (Government, EPCG and RUP) and Czech Company Skoda Praha, the concept and Term Sheet of the EWSA has been defined. With reference to originally submitted conditions of the Czech Company, the Working Team has significantly improved the mentioned conditions. Signing of this Agreement is conditioned by ratification of International Agreement with Czech Republic. The Government of Montenegro has prepared a draft International Agreement on cooperation in the sector of energy and infrastructure, and the European Commission has been informed thereof. Upon adoption of the International Agreement, the Government of Montenegro shall submit it to the Parliament of Montenegro for ratification.

Term Sheet has been agreed upon, on which basis the final EPC Agreement for Unit II TPP Pljevlja will be finalized within the shortest period, while financial institution that shows willingness to support the Project will be included in the process. In addition to mentioned International Agreement, the condition for signing this Agreement is selection of financial institution which should ensure loan funds.

Basically, it has been agreed for the Project Unit II TPP Pljevlja to be implemented through Special Purpose Vehicle (SPV), which was agreed between the Government of Montenegro and strategic partner A2A S.p.A. The Working Team prepared and agreed drafts of all Agreements necessary for SPV model, and submitted it to the shareholders and future partners in the Project.

We would like to point out that new Unit TPP Pljevlja will be entirely in compliance with all European standards regarding environmental protection and that it will enable compliance with all emission limit values in line with the Directive 2010/75/EC. With reference to the project of district heating of Pljevlja, the Agreement will envisage for the new Unit TPP Pljevlja to represent the heating source for the needs of the district heating system of the mentioned town.