PODGORICA (Montenegro), February 7 (SeeNews) – Czech company Skoda Praha said it signed a cooperation contract with General Electric for the construction of a second unit of Montenegro's Pljevlja thermal power plant.
The companies agreed to work as partners on the construction of the unit and to help state-run power utility Elektroprivreda Crne Gore (EPCG) [MNG:EPCG] to find a suitable financing for the project, Skoda Praha said in a statement on Monday.
Skoda Praha plans to present to EPCG a final proposal for the project's financial structure and funding conditions the end of February, the company said.
In September, Skoda Praha said it was in talks for syndicate financing for the project by several banks led by Czech Export Bank, with insurance provided by Czech Export Guarantee and Insurance Corporation (EGAP) and Slovak export-import bank Eximbanka SR. Back then, Skoda Praha explained that the possible supplier of the boiler of the unit is Slovak comany Slovenske Energeticke Strojarne.
In case Skoda Praha does not manage to ensure the necessary financing, EPCG could fund the project with own resources and loans, the Montenegrin energy ministry said in January.
EPCG said in September it signed a 324.5 million euro ($346.1 million) contract with Skoda Praha for the construction of a 254 MW unit of Pljevlja thermal power plant after two years of negotiations.
The Montenegrin government is the majority owner of EPCG with a 57% stake and Italian utility A2A owns 41.75%.
($ = 0.9376 euro)