EPCG halts cooperation with Skoda Praha on TPP Pljevlja project

Despite significant efforts made by both negotiating teams in the past, Elektroprivreda Crne Gore (EPCG) [MNG:EPCG] did not reach a technical and financial agreement with the Czech company, EPCG development and engineering manager Ivan Mrvaljevic said in a video file posted in the YouTube channel of Montenegro's government on Wednesday.

"The company remains fully committed to the construction of the second unit of TPP Pljevlja and by the end of January next year it will propose to the government an alternative solution for the project," Mrvaljevic said.

The companies agreed to work as partners in the construction of the unit and to help EPCG find suitable financing for the project, Skoda Praha said earlier this year.

EPCG said in September 2016 it signed a 324.5 million euro ($387.3 million) contract with Skoda Praha for the construction of a 254 MW unit of Pljevlja TPP after two years of negotiations.

The Montenegrin government is majority owner of EPCG with a 57% stake and Italian utility A2A owns 41.75%.

($ = 0.837895 euro)