The Electric Power Company (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 construction of the Iron Power Plant in 2021, and 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, as 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 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 82 million euros 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 on the first of December, and after the approval of the EPC General Meeting of Shareholders, the date of signing in communication with colleagues from the EBRD – they said in the company.
The news was asked and what the Annex Agreement between EPCG and Ivica Holding GmbH was related to the implementation of the VE Gvozd project and what this Annex would mean for this project, which will also be on the agenda of the General Meeting of Shareholders.
- Annex the contract is recognized the fact that for the purposes of project funding, the Loan agreement with the EBRD will be signed. In question and annexes are harmonized with the management of the Green Gvozd project, as well as responsibilities and obligations related to further activities on the development of the project, financing the project costs and procurement procedures – they said in a state company.
The company reminded that the building permit for access roads was obtained in September this year, while the request for the main building permit for the construction of VAROs with an accompanying documentation, based on which a solution is issued, ie. The building permit for a complex engineering facility, submit to the competent ministry of ecology, spatial planning and urbanism during this week for further action.
- In accordance with the Law on Planning and Construction of Facilities, a building permit is issued within 60 days from the date of submission of the request and will be published on the website of the relevant ministry within seven days from the date of issue. The realistic expectation is that the main building permit is issued in January. In any case, the period of issue will not affect the planned dynamics of project implementation – they pointed out in the company.
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 accordance with the EBRD’s rules, in the following period. After the evaluation of the final bids and the conclusion of the contract with the first-ranked bidder – engineering, manufacturing, delivery, assembly and commissioning of the wind turbines follow. A total of four renowned global companies, including General Electric and Nordex, passed prequalification – the company said for local media.