The electricity connection agreement with Italy was announced without key details and in English

"News" confirmed that there is a translated version of the contract, which was not published.
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Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 29.06.2011. 08:38h

How much the delay of the underwater energy connection between Italy and Montenegro or the termination of the contract for the project would cost the state, which deadlines and in which phases of the construction of the cable, plant and transmission line should be respected and how much the individual investment allocations are is not known even after the publication of the contracted documentation on 644 pages.

The incomplete contract omitted key elements of the long-agreed deal that the Italian Terna builds a submarine cable and a large-scale energy plant with which it would be connected underground, and the Montenegrin Electric Transmission System (CGES) a substation and transmission line from the coast to Pljevlja.

After a seven-month wait for the disclosure of what the Government and CGES have agreed with Terna, only extensive documentation is available to the public in English, but not in Montenegrin.

"News" confirmed that there is a translated version of the contract, which was not published. The Ministry of Economy announced in its response to "Vijesti" that it is their obligation to publish "officially signed documentation that is in English, as these are contracts of an international nature".

Many "omissis"

All parts of the contract treated as "trade secrets" were banned by Terna, and the Government agreed to hide "confidential" details, which is clearly indicated by an Italian word - "omissis" which represents deleted parts in English official documentation.

Precisely because of the "torn" members, even the one who knows English best in combination with the handling of professional terms cannot know exactly what the documentation made public by the Government, that is, its relevant ministry, entails.

It is not possible to see when the Italian side expects the Government to adopt the planning documentation and what penalties it would pay as a result of the delay, what individual figures and deadlines for investments Terna and Elektroprenos have committed to, until when construction permits are expected...

Precisely because of the "torn" members, even the one who knows English best in combination with the handling of professional terms cannot know exactly what the documentation made public by the Government, that is, its relevant ministry, entails.

The negotiation team of the Government and CGES announced during last year's harmonization of the clauses that the translation was provided and that it was done before signing the agreement, which includes all the contracts.

In addition to the administrations of the energy transmission companies, the current minister Vladimir Kavarić was responsible for the annexes specifying the obligations, which were published without key details. From the contract with the dominant technical elements and known to the public, it is clear that in the event that Terna or the Montenegrin side termination of employment, that someone will have to pay to compensate for the damage.

This implies that the company that initiates the abandonment of the project could demand that the partner return as much as it has invested, i.e. to settle the "expenses for planning, development, design, construction, construction of infrastructure...".

The signatories agree that due to the dispute, they have the right to international arbitration.

When asked why the published documents were unsigned and unstamped, the Ministry replied that the material for the electronic version was not technically prepared by scanning, which is why there were no signatures, but it was stated who was behind the contract and annex.

Milo and Silvio understood each otherTerna became a co-owner of CGES with 22 percent of the shares through recapitalization without a tender, bringing in about 30 million euros to get the job of building the cable, which was agreed upon by former Montenegrin and Italian prime ministers Milo Đukanović and Silvio Berlusconi.

The value of the project reaches 800 million euros, and transmission networks to Serbia and Bosnia and Herzegovina, substations...

When asked why the published documents were unsigned and unstamped, the Ministry replied that the material for the electronic version was not technically prepared by scanning, which is why there were no signatures, but it was stated who was behind the contract and annex.

The government announced that since February it has been waiting for Terna's consent to publish what was contracted, and ten days ago the partner approved the disclosure of the contract for the energy connection project between Montenegro and Italy.

The management of Terna informed the Montenegrin side that EU legislation and practice "generally ensure the confidentiality of such types of contracts and their content, especially as they relate to commercial and business strategies of companies".

The Administrative Court, following a lawsuit by MANS, recently ordered that the contract on the underwater cable be made public.

The Italian side counts on most of the income from energy transit from future power plants from Montenegrin hydro potential, thermal power plants, small HPPs and wind turbines.

Millions of figures are also certain from the export-import of electricity through connected systems with Serbia and Bosnia and Herzegovina, but also Albania, with which Podgorica is connected in another project.

MANS: Cheeky

The Network for the Affirmation of the Non-Governmental Sector (MANS) has announced that in the coming days it will "comb" the published contracts in detail, saying that it is, to put it mildly, rude that this was done only after a public discussion on plans for the construction of the cable and other energy facilities.

"In addition to the fact that official data could not be used during the discussion, an additional limiting factor for those who have the desire and interest to learn about the project is that three documents of about 700 pages were published in English, which not everyone needs to know," they said. from MANS.

The Administrative Court, following a lawsuit by MANS, recently ordered that the contract on the underwater cable be made public.

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