When it was elected, the Government of Montenegro announced it would ban the construction of small hydropower plants (SHPPs) and revise concessions. Three months later it terminated seven contracts.
The Montenegrin government has terminated seven contracts for the construction of small hydroelectric power plants on the rivers of Đurička in Plav, Bistrica in Bijelo Polje, Bukovica in Šavnik, Reževića in Budva and Ljeviška and Raštak in Kolašin. According to the domestic media, the construction of two SHPPs was planned on Raštak.
The government suspects there was corruption and nepotism, but official explanation for terminating the contracts wasn’t provided
The daily Dan reported contracts were terminated with Hydra MNE, Plava Hydro Power and Bistica Clean Energy. Hydra MNE is majority-owned by Jovan Gordijan and Milovan Maksimović, President Milo Đukanović’s cousin. Plava Hydro Power is apparently linked with Florin Krasniqi, while Žarko Burić’s BP Hydropower has majority control over the Bistrica Clean Energy consortium.
Of note, three weeks ago the government suspended the approval of the construction of SHPP Slatina on the Slatina river in Kolašin. It was under development by BB Hidro, co-owned by Blaž Đukanović, the president’s son.
Prime Minister Zdravko Krivokapić earlier announced a ban on the construction of SHPPs would be introduced and that all concessions will be reassessed
As he presented the proposed cabinet’s program in the Parliament of Montenegro at the beginning of December, just before he became prime minister, Krivokapić promised a ban on the construction of SHPPs and that all concession agreements would be reviewed on suspicion of corruption and nepotism.
The government stopped approving new SHPPs three weeks ago
Three weeks ago, the government stopped licensing new small hydropower plants until the existing contracts are reviewed by the working group of the Ministry of Capital Investments.
However, the termination of the concession agreements will have its consequences, because the investors have already filed claims. The ministry wouldn’t give an estimate on the damages that would need to be paid, while it attributed the develoments to bad planning, Vijesti reported.