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Small hydropower project changes ownership structure

Published

March 10, 2016

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Published:

March 10, 2016

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Company Radius, registered in Herceg Novi, stepped out of the concession contract for the construction of a small hydropower plant (SHPP) on Murinska rijeka in the municipality of Plav in Montenegro’s east. According to a document issued by the state government, the share is transferred to Industriaimport–Industriaimpex.

The concession was granted in 2010 to a consortium of Elektrotehna from Berane and Radius for the construction of two small hydropower plants with total capacity of 2.07 MW. The latest annex established the deadline until May 19 of this year for obtaining the construction permit, when phase two of the project will start. According to the document, signed on August 31, 2015, Elektrotehna was declared concessionaire and Radius was assigned 50% in the company, in line with the concession contract. However, Radius soon asked to step out from the deal due to difficult financial situation.

The new contract, with economy minister Vladimir Kavarić as co-signer, obligates the concessionaire to obtain a new banking guarantee lasting 15 months for the works in the first year of phase two of the small hydropower plant project. The amount must be equivalent to 25% of the planned investment. By the end of the first year the firm must provide another such guarantee.

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