Montenegro’s power utility Elektroprivreda Crne Gore (EPCG) has awarded a EUR 2.25 million contract for the equipment for Perućica hydropower plant (HPP) to a consortium established by Končar DST and Electro Team. The firms will deliver five transformers as well as spare parts and special tools.

The contract was signed by Igor Noveljić, CEO of EPCG, and consortium representative Ivan Klapan, who is also the CEO of Končar DST.

Dragan Čizmović, director of HPP Perućica, said that the capital reconstruction of all seven generators is underway. The fourth, fifth and seventh generators have been overhauled over the past two years.

Three bids have been submitted for the contract

He said that three offers were received for the delivery of the equipment. The consortium’s one was the best, Čizmović added.

The contract is scheduled to be implemented by 2022. Two transformers are to be delivered and installed this year, two more next year and one in 2022.

Existing transformers at the Perućica HPP are produced by Končar. They have been operating for 60 years without any problems, EPCG said in a press release.

HPP Perućica has been using Končar transformers for 60 years

Klapan said the fact that employees of Končar did something 60 years ago contributed to the company’s decision to submit a bid, so that the current generation of employees could continue the work initiated then.

Negotiations on a loan for the eighth unit to start this year

Noveljić said a EUR 60 million investment is planned in HPP Perućica.

Last year, EPCG signed a EUR 33 million loan arrangement with Germany’s KfW Development Bank for phase 2 of the overhaul and modernization of the hydroelectric system.

Negotiations with the lender on a new loan arrangement, worth EUR 23 million, are expected this year, the company head asserted, adding that the funds would be used to install the eighth unit in the power plant.

He noted investments in Perućica are part of a five-year EPCG plan worth EUR 170 million.