China Gezhouba Group submits bid for construction of second block at thermal power plant Pljevlja

Podgorica, Montenegro (1 October 2012) – China Gezhouba Group International Engineering Co. Ltd submitted a bid for the construction of the Second Block at the thermal power plant Pljevlja. The Memorandum of Understanding between the leading Chinese thermal power company and the Government of Montenegro was signed in Shangai on 29 August 2012. 

The bid, which has been submitted to the Ministry of Economy today, contains a proposal of technical solution for two options: the first option is of installed capacity of 220 MW and the another one is of 300 MW, whereas the estimated cost of the investment is much more favourable than the original estimate.

The technical solution has already been submitted to the Energy Agency of Montenegro. The next step is to agree on the financial arrangements regarding the return of funds from the electricity that will be produced in the future thermal power plant.

The Second Block of thermal power plant Pljevlja is one of the projects that the Ministry of Economy applied for the programme titled “12 measures to promote cooperation between China and Central and Eastern Europe countries”. At the Chinese-Eastern Europe summit which was held in Warsaw, Prime Minister Igor Lukšić arranged Montenegro’s participation in the programme for which the Chinese Government had allocated 10 billion dollars.

The Ministry of Economy, through the thermal and hydro power projects, such as the second block at the thermal power plant Pljevlja and the valorisation of the potential of the rivers Komarnica and Morača, made Montenegro the first country in the region that submitted the concrete projects and applied for the 10-billion-dollar fund.