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Montenegro opens new tender for steel mill EPCG Zeljezara lease

Jul 9, 2024, 11:38:12 AMArticle by Iskra Pavlova
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July 9 (SeeNews) - Montenegro's state-controlled power utility EPCG said it has opened a new tender for the lease of the production facilities of steel mill EPCG Zeljezara Niksic, aiming to preserve production at the troubled plant.

Montenegro opens new tender for steel mill EPCG Zeljezara lease
Photo: EPCG Zeljezara Niksic

EPCG is offering a 15 to 50 year lease of the production facilities of EPCG Zeljezara Niksic, it said in the tender invitation.

Bidders should offer to pay a monthly fee of 30,000 euro ($32,500) to 150,000 euro euro. They should also present a five-year business plan for investment in existing production facilities, machinery, and auxiliary equipment, as well as a plan to expand the production capacities. In addition, they should hire between 100 and 150 workers in the first six months after signing the lease contract.

Bidders needs to make a first demand guarantee of 30,000 euro valid for sixty days, or pay a 30,000 euro deposit.

The bidding deadline expires on July 24.

In the two tenders held earlier this year, the lease period for EPCG Zeljezara's production assets was set at up to 10 years. Swiss-registered company 8B Capital, owned by Russian businessman Igor Shamis, was the sole qualified bidder in both of them but EPCG turned down the bids because the company failed to provide bank guarantees and pay the required deposit. After cancelling the tenders, EPCG invited all interested parties to individual negotiations and 8B Capital once again emerged as the only candidate for the lease. It, however, asked for a 50-year lease.

EPCG acquired Zeljezara Niksic from Turkey's Toscelik for 20 million euro in December 2022.

Located in the western city of Niksic, EPCG Zeljezara has two 60-tonne electric arc furnaces that can produce an estimated 300,000 metric tonnes of crude steel per year.

($ = 0.923 euro)

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