Gradual recovery and full normalization of activities in all agreements of the Electric Power Company of Montenegro (EPCG) can start in the second half of June and maybe even earlier, said in the interview for Dnevne novine Mr Ivan Mrvaljević, executive manager of the Directorate for Development and Engineering in EPCG.
How have Government measures impacted the dynamics of the implementation of key EPCG projects? How do you see development of the situation this year?
Mr Mrvaljević: Just like Europe and the rest of the world, Montenegro has been severely affected by the pandemic. In accordance with Government’s recommendations, the majority of the employees in the EPCG worked at home while the company was faced with great challenges in all segments of operations. EPCG has launched new investment cycle which implies cooperation with renowned partners, projectors, contractors, financial institutions from the EU countries, region countries and companies from China and India. Some projects were affected by the force majeure.
However, thanks to Government’s timely response, we hope that all measures will be lifted at the beginning of June.
How far have you come with the reconstruction and modernization of the Perućica and Piva hydro power plants?
Mr Mrvaljević: We signed credit arrangement with KfW bank in September last year. Opening bids in tender procedure for reconstruction of the Opačica channel and recovery of Moštanica channel was completed several days ago. The works are expected to begin in August.
Tender for the electric engineering part of the project, which encompasses reconstruction and modernization of hydro engineering and electric equipment of aggregates A5, A6 and A7, hydromechanical equipment, equipment for hydrological and hydraulic measurements, installation of integral information system is planned for September. Agreement on the preparation of project and tender documentation for the installation of A8 aggregate in Perućica hydro power plant will be signed in the second half of this year.
Project of the reconstruction and modernization of Piva hydro power plant is in the implementation phase. The project is worth €15 million and is carried out by consortium Litostroj-Slovenia- ABB-Italy-ABB Croatia. After successfully completed reconstruction and modernization of the self-consumption system of the plant, after the montage of the state-of-the-art equipment, reconstructed A2 aggregate was planned to be fully operational in March. Due to the situation provoked by COVDI-19, the planned examination and entry into operation were not carried out.
Construction of Gvozd wind farm near Nikšić is being carried out in cooperation with IVICOM. You have announced recently commencement of geological works. Has COVDI-19 pandemic affected the planned dynamics?
Mr Mrvaljević: No, dynamics remains unaffected. Works will begin at the end of June. Development of the project of geological works is in the completion phase. The works will be carried out by local company which has references in the area. Negotiations with the EBRD on financing the project, worth over €60 million, are underway. All tenders for the procurement of equipment for the wind farm will be carried out in line with EBRD rules.
What was the last activity in the construction of solar plant? The first kilowatts were planned for next year. Has the coronavirus put off such plan?
Mr Mrvaljević: Construction of solar photo-voltage plant has been delegated to the international consortium made up of Finnish national energy company Fortum, EPCG and world’s greatest EPC contractor in the domain of solar plants – Sterling & Willson company from India.
While respecting international view of the consortium, uncertainty of the pandemic at world level brings the dynamics of the implementation of the project into question. We can only hope that the construction of the first phase of the plant could begin next year.
How far have you come with the adoption of the Detailed Spatial plan for multi-purpose accumulation on Komarnica river? What is the view of B&H on the subject?
Mr Mrvaljević: The procedure of the adoption of the Detailed Spatial Plan is in the finishing phase.
As far as we know, Ministry of Sustainable Development and Tourism has asked B&H to take part in the cross-border procedure of strategic assessment of the environment impact. B&H expressed interest in taking part and delivered opinion which has to be considered by the expert team in charge of developing documentation. As far as date of the adoption is concerned, hopefully it will enter the finishing procedure of adoption in the Parliament in June.
Considering it’s a €300 million investment, is it likely that the project might be delayed due to the economic challenges that lie ahead?
Mr Mrvaljević: One of the key elements of our five-year old investment plan for 2020-2024 is the construction of new hydro-energy facilities. In that context, construction of Komarnica hydro power plant is priority.
I would take this opportunity to mention that Mr Ignacio Galan, CEO of Spanish energy company, Iberdrole, has pointed out that the best way to overcome times of uncertainty is speeding up investments.
