PODGORICA (Montenegro), October 23 (SeeNews) – The Montenegrin economy ministry said on Friday it has signed a memorandum of understanding with Chinese company Norinco which defines the prerequisites for the realisation of major projects in the field of hydro power.
The memorandum is an expression of the interest of both Montenegro and China to partner on the construction of hydro power plants on the rivers Moraca and Komarnica, the economy said in a press release, following the signing ceremony.
The ministry added that, under the memorandum, Norinco will be in charge of financing the preparation of project proposals for the construction of hydro power plants, while Montenegro is tasked with offering relevant technical and expert assistance in accordance with the powers and jurisdiction of its state authorities.
According to a draft document published on the website of the government, Norinco will also be obliged to assist Montenegro in securing funds from the Chinese government or banks for the realisation of joint projects.
Existing technical documentation on the government’s website shows that four HPPs are planned on the river Moraca with a combined installed capacity of 238 MW and an estimated annual production of 694 GWh. The anticipated construction period of all four facilities is six years, while the total estimated cost is 540 million euro ($600.7 million).