Minister of Economy Vladimir Kavarić said the Government of Montenegro and Italian-based company A2A have reached an agreement on the basic elements of future cooperation and the extension of cooperation for five years once the shareholders’ agreement in the Electric Power Industry of Montenegro (EPCG) gets signed towards the end of the year. Meanwhile, the interim agreement, which was extended at a cabinet session by endorsing the interim agreement annex, will be in force, he said at a press conference.
Both sides agreed on the obligations, dynamics, and financial framework for the construction of the block 2 of the Thermal Power Plant Pljevlja. Kavarić added that the drafting of a business plan has also been arranged, which will be a backbone for measuring the EPCG’s future performance.
The Economy Minister pointed out that the Government and A2A have also agreed on a put option for A2A’s investment worth EUR 430 million at the time of entering the EPCG in 2009. A2A is eligible to initiate this option in certain specific circumstances, and in that case Montenegro would be ready to pay EUR 250 million in seven annual instalments for the A2A shares in the EPCG, Minister Kavarić noted.
The deadline for agreement officially expired earlier this year, and it was postponed four times.
