Montenegro’s state-owned electricity company EPCG has launched a tender for construction supervision of the Otilovići small hydropower plant, advancing a project that had been delayed into a more structured construction phase. The supervision contract is valued at approximately €100,000, excluding VAT. Bids are due by 27 July 2026.
Scope and timeline of the supervision contract
The selected consultant will oversee the contractor’s work and verify quality and quantities during implementation. The role also includes monitoring compliance with the design and supporting technical acceptance of the completed plant. The project’s schedule has been extended several times after difficulties in selecting a contractor delayed the start of construction.
EPCG awarded the design-and-build contract to Montenegrin company Vigoris Ecotech at the beginning of the year. Construction is planned on the Ćehotina River near Pljevlja. The scheme will use water associated with the existing Otilovići reservoir.
Plant configuration and expected generation
The hydropower facility will be equipped with two horizontal Francis turbines. Their combined installed capacity will be 3.2 MW. EPCG expects annual generation of approximately 11 GWh, corresponding to a capacity factor of about 39%.
EPCG estimates that the plant’s output would be sufficient to cover annual electricity consumption of roughly 1,800 households. The project is implemented under a concession agreement signed with the Montenegrin Government in 2022.
Concession framework and technical coordination needs
While Otilovići is small compared with EPCG’s major hydropower assets, it is designed to provide predictable renewable generation using existing water infrastructure. EPCG has indicated that building close to an operating dam and water-supply system requires careful technical coordination. The supervision tender is therefore intended to manage multiple construction interfaces.
The consultant is expected to control interfaces between civil works, hydraulic equipment, turbines, electrical systems and grid connection. Environmental-flow obligations and reservoir operating requirements are also to be reflected in testing and commissioning. EPCG has not provided a complete current CAPEX figure in the published project information.
Indicative investment range for the hydropower scheme
An assumed hydropower investment range of roughly €2 million–€4 million per MW implies a total capital envelope in the region of €6 million–€13 million. The final figure would depend on how much existing infrastructure can be reused.
EPCG states that Otilovići will not materially alter Montenegro’s national generation balance on its own. Its role is described as adding domestic renewable output near an established water asset while providing another dispatchable plant for a system sensitive to hydrology and electricity-import prices.
