Skoda Praha to sign TPP Pljevlja financing deal soon - Montenegro econ min

Skoda Praha is in the final stage of talks with potential creditors for the financing of the project, the economy ministry said in a statement. 

Under the Early Works Agreement (EWA) and the Engineering, Procurement, and Construction (EPC) contract, both signed in September, Skoda Praha should deliver a decision for the construction and the financing of the project by the end of February and the company expects the deadline to be met, the Montenegrin economy ministry said.

In September, Skoda Praha said it was in talks for syndicate financing 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, Montenegrin state-run power utility Elektroprivreda Crne Gore (EPCG) could fund the project with own resources and loans, the energy ministry said in the statement.

EPCG said in September it signed a 324.5 million euro ($346.3 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%.

($ = 0.9369 euro)