Montenegro To Postpone Tender for Bijela Shipyard - Media

The tender was expected to be called by mid-October, according to previous media reports. It would be the third attempt to sell the company.

The cabinet in Podgorica is considering postponing a new tender in view of the impact of the global financial crisis on the shipbuilding industry, daily Republika reported.

A tender might be called by the end of the year if potential buyers explicitly express interest, it added.

For the fourth quarter Jadransko Brodogradiliste has received fewer orders than usual because of the crisis, Republika said.

Montenegro said in June its second attempt to sell its 61.57% in Jadransko Brodogradiliste Bijela failed as the first-ranked consortium of Channel Islands-registered C&S.I and Mercury Distribution and the second-ranked bidder, a consortium of Russian repairer of mine sweepers Avangard Shipyard and Avangard Bank, withdrew from the sale talks. C&S.I and Mercury Distribution withdrew due to an ongoing litigation against the Montenegrin shipyard by Greek company Zambounis, launched after a Zambounis tanker partly sank in the Montenegrin port of Bijela last year while it was awaiting repairs. The privatisation agency did not say why the talks with the second ranked bidder had failed.

C&S.I and Mercury Distribution had offered to pay 7.1 million euro ($9.3 million) for the majority stake and to invest a further 40 million euro in the shipyard. Avangard had offered to pay 4.0 million euro for the state-owned stake and to invest a further 30 million euro.

Jadransko Brodogradiliste (www.asybijela.com), set up in 1927, is located in the Adriatic town of Bijela. It is completely equipped for repairing and reconstructing ships and other vessels, of all types and for all purposes, of up to 120,000 deadweight tonnes. It has two floating docks of 250 metres and 184 metres in length and an operating wharf of 1,120 metres.

($=0.7627 euro)