UNIT II OF TPP PLJEVLJA: PRESS RELEASE

Škoda Praha, the current partner of EPCG in the project on construction of the Unit II of TPP Pljevlja, has presented today the proposal for an alternative financier of the project, on the occasion of presenting the final solution for implementation and financing of the project Unit II of TPP Pljevlja, in compliance with the Early Works Service Agreement (EWA) and the Engineering, Procurement and Construction Contract (EPC) signed with this company in September last year. Also, under the new proposal, Škoda Praha has selected the American company General Electric to be the partner during implementation of this project.

The Project Steering Committee will analyze the proposed alternative solution within the relevant time period, in cooperation with relevant entities, and even after additional negotiations possibly try to achieve an agreement with financial and insurance institutions provided and proposed by Škoda Praha (Bank of China and Sinosura), and the public will be informed on a timely basis about the course of negotiations on financing and the final decision.

Depending on the schedule set out in the agreements signed, development of the Main Design would last 18 months while the total period for works execution would last 36 months.