Montenegrin state-owned power utility EPCG has made a key step toward constructing the Otilovici small hydropower plant (SHPP) by selecting the winning bid in a public procurement valued at 6.8 million euros.
The tender, conducted as an open procurement process, covers the full delivery of the project, including detailed design preparation, civil construction, supply and installation of electro-mechanical equipment, as well as testing and commissioning of the facility.
The most economically advantageous offer was submitted by local company Vigoris Ecotec. Competing bids from the Decom/SBCC consortium and Elnos were rejected after being assessed as non-compliant with tender requirements.
The Otilovici project plans a hydropower plant with an installed capacity of around 2.6 MW and an expected annual output of roughly 11 GWh of electricity. The concession agreement was signed in August 2022, while urban planning and technical conditions were issued in mid-2024, along with an annex to the concession contract.
EPCG had previously launched several tenders, including in May 2024 and later toward the end of last year, both of which were cancelled. During that period, the company considered bringing in international financial institutions to support construction financing. However, with the third tender and selection of a preferred bidder, that option has effectively been set aside.
Earlier projections estimated construction would take 18 to 24 months, targeting operation by the end of 2026. These timelines have been adjusted due to earlier procurement setbacks. The next phase will depend on the successful conclusion of contract negotiations and the start of construction works following the award decision.
