MONTENEGRO
PART B ELECTRICITY INVESTMENTS
Electricity Interconnection

New HVDC undersea interconnection Montenegro – Italy (375 km)
Interconnection
Type
MONTENEGRO, ITALY
Location
Expected overall cost 700 Mio.
Project value (Euro) approx.
In December 2007, the Ministers of economic development of Montenegro and Italy signed an intergovernmental agreement to develop the interconnection; this was followed by the agreement between the two TSOs; EPCG (Montenegro) and TERNA (Italy).
Financing by sources (Euro)
The feasibility study was finalized in April 2008 and its conclusions were accepted by the project’s steering committee.
Progress up to 1.11.2008
Electricity generation projects with regional significance

New HPPs in cascade on Morača river, including: HPP Andrijevo (127.4 MW), HPP Zlatica (37MW), HPP Raslovići (37MW) and HPP Milunovići (37MW), in total 238.4 MW installed capacity with a possible electricity production of 693.7 GWh
Electricity generation/ Greenfield
Type
MONTENEGRO
Location
430.1 Mio.
Project value (Euro) approx.
Preliminary designs for all four hydro power plants, 1987 Final designs for upstream cofferdams and diversion tunnels for all four hydro power plants, 1987 Research works required for final design in 1988 Update of investment technical documents by Energoprojekt SR in 1998 Tender documentation is finalized.
Status/potential start-end date
KfW is interested in financing the project
Financing by sources (Euro)
The HPPs Andrijevo and Zlatica are listed as options in the GIS update under the Medium Gas Price Forecast for 2015; the plants will reduce the dependency of Montenegro for imports of electricity;
The HPPs are also recommended in the Montenegro Government Energy Strategy for commissioning in between 2012 and 2015.
Reference
IFC was selected as Lead Advisor for the development of the series of hydroelectric power generation plants on the Moraca River, as PPPs.
Significant preparatory and technical design work has already been done; The preparation of the Detailed spatial plan for the area of water storages is in the finalization phase as well as the Strategic Environmental Impact Assessment. With the assistance of the IFC, hired as advisor for preparation and implementation of the tender process, the existing technical plans and designs are being reviewed as well as applicable legal regulations, and requirements for implementation of the project are being specified with objective to prepare the tender documents. It is expected that prequalification tender will be published at the beginning of the next year (2010).
Progress up to 25.10.2009

New HPP Komarnica on Komarnica River; 168 MW (2turbines x 84 MW)
Electricity generation/ Greenfield
Type
MONTENEGRO
Location
134.1 Mio.
Project value (Euro) approx.
Study of alternative dam profiles for selected location and Project documentation for research works is prepared. Currently, research works are in on going to collect basic data for the general design and feasibility study. Tender documentation is finalized.
Status/potential start-end date
KfW is interested in financing the project.
Financing by sources (Euro)
The HPP is listed as candidate for expansion programme in GIS update, under the medium gas price forecast scenario, for 2012; the plant is the most advanced of EPCG's projects and could improve the country’s and the region's energy balance. It is also listed in the Montenegro Government’s Energy Strategy for commissioning in 2015.
The revitalisation and modernisation of the existing power plants is also being implemented and the objective of these activities is to optimise the existing generation system and to increase total annual generation by approximatelly 400 GWh.
Reference
The construction of HPP Komarnica is included in the spatial and hydraulic plans of Montenegro. (KfW’ comment: the modernisation of HPP Piva within German Development Cooperation is already under implementation (first phase: 17 million EUR, second phase 30 million EUR)).
In the framework of the bilateral cooperation between Montenegro and Austria, the Prefeasibility study is done by Poyry Consultants and financed by Voith Siemens (AT). The scope is verifying the technical economic merits of the project and validating the investment decision, to be taken by the Assembly of Montenegro. The elaboration of the Detailed spatial plan for the area of water storage and the Strategic Environmental Impact Assessment is underway.
Progress up to 25.10.2009

New unit of 225 MW installed at TPP Pljevlja 2 (coal fired)
Electricity generation/ expansion
Type
MONTENEGRO
Location
175 Mio.
Project value (Euro) approx.
Part of the documentation was prepared when the TPP Pljevlja 1 was constructed, but it needs updating and completing; environmental assessment is also needed.
Status/potential start-end date
To be determined
Financing by sources (Euro)
The project is listed as a priority in Montenegro Energy Strategy; The privatisation of TPP Pljevlja and the associated lignite mine is expected to result also in the construction of the second unit.
Reference
EPCG selected a Slovenian consortium of consultants to prepare the EIA, the feasibility study and other analysis as a first step for the construction; The Government decided in March 2008, to use the Public Private Partnership model to build Unit II of TPP Pljevlja; EPCG will invest existing in the infrastructure of TPP Pljevlja and Coalmine, and the strategic partner would provide funds for the new unit. EPCG will integrate the TPP with the coalmine into a single energy complex.
The Government of Montenegro requested that this project is no listed as a priority project as of January 2010.
Progress up to 19.01.2010
New electricity projects proposed

Thermo powerplant 2x250 MW coal fired, Maoce brown coal basin
Electricity generation, Concession
Type
MONTENEGRO
Location
Estimated at 1.2 Billion
Project value (Euro) approx.
A German consultant elaborated study for Development and private sector participation in Pljevlja thermal power complex; this will also includes a proposed transaction structure for the potential construction of Block 2 of TPP Pljevlja and a new TPP Maoce (500 MW).
Financing by sources (Euro)
The Invitation for prequalification for concession award for exploitation of coal from Maoce basin and the construction of the powerplant was published in November 2009.
Progress up to 19.01.2010

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