Elektroprivreda (EPCG) this week should submit a request to the Ministry of Ecology, Spatial Planning and Urbanism for the issuance of the main construction permit for the construction of the Gvozd wind power plant, while on December 23 the Shareholders’ Assembly should approve the proposal for a loan agreement between the state energy company and the European Bank for Reconstruction and Development (EBRD), which will finance this energy facility.
This was officially told to News from EPCG, which in the first announcement of this project announced the expected start of the construction of the Gvozd plant in 2021, and the commissioning 18 months after the start of the works. However, it was later clarified that the coronavirus pandemic in the previous two years was the key reason why the construction of the wind farm was delayed because it affected the acquisition of the necessary permits, consents and negotiations on the financing of this project and that it is realistic that this facility will be online in 2024 year.
– The agenda for the Shareholders’ Meeting, scheduled for December 23, has been expanded with an item related to the “Proposal of the decision on the approval of the loan agreement of Elektroprivreda with the European Bank for Reconstruction and Development” and the same refers to the realization of the Iron project. The agreed draft of the contract defined the loan repayment plan until the end of 2032, i.e. a two-year grace period starting on June 12 during the construction period and an eight-year repayment period. Agreement on a corporate loan in the amount of EUR 82 million for financing the construction of the Gvozd Power Plant and the necessary infrastructure for connection to the power system of Montenegro, so that the project will essentially pay for itself. The participation of investors is not foreseen, but the loan funds are in the amount of 100%, and in addition, the loan will be returned from the produced electricity and will not be paid by the citizens in any way – EPCG explained.
The company stated that at the end of last month, on the basis of agreed principles on lending conditions, the EBRD and EPCG agreed on a loan agreement for the financing of the Gvozd construction project, and that the agreed draft was approved by the board of directors of the energy company at the beginning of this month, after which, in accordance with internal acts, it is expected to be approved by the Shareholders’ Assembly.
– The project was approved by the EBRD board on December 1st, and after the approval of the EPCG Shareholders’ Assembly, the signing date will be agreed upon in communication with colleagues from the EBRD – the company said.
The news also asked what the annex to the contract between EPCG and the company Ivicom Holding GmbH related to the realization of the Gvozd project refers to and what that annex will mean for this project, which will also be on the agenda of the Shareholders’ Assembly.
– The annex to the contract recognizes the fact that a loan agreement with the EBRD will be signed for the financing of the Gvozd project. The contract in question and the annex agree on mutual rights and obligations in connection with the management of the project company Green Gvozd, which will be 100% owned by EPCG, as well as responsibilities and obligations in connection with further activities on the development of the project, financing of project costs and procurement procedures – they said. in a state-owned company.
The company reminded that the construction permit for the access roads was obtained in September this year, while the request for obtaining the main construction permit for the construction of the Gvozd Power Plant will be submitted with accompanying documentation, based on which the decision will be issued, i.e. building permit for a complex engineering facility, to be submitted to the competent Ministry of Ecology, Spatial Planning and Urbanism during this week for further processing.
– Pursuant to the Law on Spatial Planning and Building Construction, the construction permit is issued within a maximum of 60 days from the date of submission of the request and it will be published on the website of the relevant ministry within seven days from the date of issuance. It is realistic to expect that the main construction permit will be issued in January. In any case, the release period will not affect the planned dynamics of project implementation – the company emphasized.
When asked when the main works on this new energy facility will begin, the EPCG stated that activities related to the main contract for the delivery and installation of wind turbines are expected to begin in June 2023, while the preparatory works themselves will begin earlier in the spring.
The Montenegrin electric transmission system has given consent for its connection to the electric power system of Montenegro.
Four global companies passed the pre-qualification tender
When asked whether the second part of the tender for the selection of equipment suppliers and contractors for Gvozd was completed, the answer was that the evaluation of the pre-qualification part of the bids was completed and the bidders who met the required qualification criteria were selected with the consent of the EBRD Bank.
– All tender procedures are conducted transparently on the electronic procurement portal of the EBRD (ECEPP) in accordance with their procedures. As previously stated, the bidders who have qualified are expected to submit final binding bids containing the technical and financial part in the following period, in accordance with the EBRD’s rules. After evaluation of the final offers and conclusion of the contract with the first-ranked bidder – followed by engineering, manufacturing, delivery, assembly and commissioning of wind turbines. A total of four renowned global companies, including General Electric and Nordex, passed prequalification – the company said, eKapija writes.
