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Montenegro launches third tender for Otilovici small hydropower plant construction

Montenegrin state-owned power company EPCG has launched a third tender for the design and construction of the Otilovici small hydropower plant (SHPP). The project’s value remains the same as in previous attempts, set at 7 million euros excluding VAT, or 8.47 million euros including VAT.

The project includes preparing the main design, constructing the facilities, delivering and installing electro-mechanical equipment, and carrying out testing and commissioning. The contract allows six months for completing the main project design, not including time required for revisions, and another six months for the environmental impact assessment study, excluding approval by the Environmental Protection Agency. Construction is expected to take between 12 and 20 months, with EPCG transferring the project to the contractor seven days after the building permit is issued.

The deadline for submitting offers is 20 October. The SHPP Otilovici is planned to have an installed capacity of around 2.6 MW, generating an estimated 11 GWh of electricity annually. The concession agreement with EPCG was signed in August 2022, with urban planning and technical requirements issued in mid-2023, followed by an annex to the contract.

EPCG previously launched two tenders, the first in May and the second at the end of last year, both of which were cancelled. While the company had considered involving international financial institutions as partners, the announcement of this third tender indicates that option is currently on hold.

Originally, EPCG estimated construction would take 18 to 24 months, with operations beginning by the end of 2026. However, repeated tender failures have already delayed the timeline, and it remains uncertain whether the latest attempt will be successful.

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