More than 23 million euros for the heating of Pljevlja

The money for the ecological reconstruction of the second block of the Thermal Power Plant in Pljevlja, which is estimated at 40 million euros, will be provided primarily by the Electric Power Company (EPCG) from its own budget, but if the possibility arises, favorable credit arrangements would also be used.

When it comes to the heating of Pljevlja, which will be done in parallel with the ecological reconstruction, it will cost around 23 million euros, but that figure is not final.

This was told to the "News" in the joint responses of EPCG and the Ministry of Economy.

It has not been specified whether the entire heating will be completed in 2021, when the ecological reconstruction is planned to be completed.

It was explained that the dynamics of implementation will be more closely known after EPCG makes a conceptual solution for the heating project.

The ecological reconstruction of the second block of the Thermal Power Plant and the heating of Pljevlja was announced at the end of last year, when the Government decided to terminate the contract with the Czech company Škoda Praha, which related to the construction of the second block of the Thermal Power Plant.

It was then announced that the ecological reconstruction of the first block will cost 40 million euros and that the money will be provided by EPCG.

"The unique list of priority infrastructure projects, which was adopted last year by the National Investment Commission, estimated that the total value of the environmental reconstruction of the first block of the Thermal Power Plant with heating in the city of Pljevlja is 63,6 million euros. Given that the heating project will be implemented in coordination with the Government, the Municipality of Pljevlja and EPCG, activities are underway to structure its implementation", EPCG and the Ministry of Economy told "News".

When asked what money will be used to finance the heating - it was explained that the Government has two options: direct allocation of money from the capital budget (510.000 euros is provided in the capital budget for the heating project for this year alone) and the waiver of the dividend or a part of it, which the Government as a shareholder in EPCG belongs on an annual basis.

"What is important to note is that the EPCG budget provided the necessary money for the part of the project related to the ecological reconstruction of the first block of the Thermal Power Plant for this year, while the other necessary money will be provided in a timely manner depending on the actual value of the investment."

On December 25, EPCG announced a tender for the selection of a company for the preparation of the conceptual project of ecological reconstruction.

As explained, the execution of the works is preceded by the stage of creating a conceptual project that will define the best necessary technological solutions for the ecological reconstruction of the first block of the Thermal Power Plant.

"The closing of the public call is scheduled for February 1st, and the plan is that after the selection of the company and the preparation of the conceptual project... the selection of the contractor and the equipment that will be installed in a period of about three years will be carried out. The plan is to complete the environmental reconstruction project by 2021. That project includes, among other things, the construction of a system for desulfurization, denitrification, improvement of the operation of the electrofilter plant, construction of a waste water system and reconstruction of the transportation system of combustion products", said the EPCG and the Ministry of Finance.

Air pollution linked to 22 percent of deaths?

Heating is important because it would reduce air pollution in Pljevlje, since a large number of citizens use coal for heating.

The findings of the World Health Organization (WHO) showed that 22 percent of deaths in Pljevlja can be linked to air pollution.

"Annual average concentrations of PM10 particles in Pljevlje are approximately twice as high as those in Podgorica or Bar. In Pljevlja, the daily mean concentrations of PM10 are higher than the permitted 50 micrograms for 64 to 217 days a year, which is much more often than is allowed by the EU Air Quality Directive (35 days)," the study says.

The worst was in 2012, when there were 338 exceedances out of 217 days of valid measurements. During 2016, out of 364 days of measurement, 181 days were exceeded, and the allowed exceedance was 35 days. This year, in November, the instruments of the Environmental Protection Agency registered at one moment as many as 787 micrograms per cubic meter of PM10 particles, which is a concentration as much as 16 times higher than allowed.

Soon, an alternative solution for the construction of the second TE block

EPCG reiterated that by the end of the month they will propose to the Government an alternative solution for the construction of the second block of the Thermal Power Plant.

"EPCG, in accordance with the energy strategy and the Government's recommendations, is committed to the construction of energy facilities and the second block of the Thermal Power Plant, so the project management committee will propose to the Government a further alternative solution by the end of January 2018 in order to continue the implementation of the second block project". they said from EPCG.

In September 2016, the government signed a contract on the development of the main project (EWA contract) and a contract on the execution of works (EPC contract) with the partner from the Czech Republic, Škoda Praha.

Škoda's obligation was to provide a financier for a project worth around 338 million euros.

Škoda Praha was supposed to provide 85 percent of the required money.

The plan was for the Czech Export Bank (CEB) to give a loan, but it gave up lending, due to, as it previously stated, the impossibility of obtaining a state guarantee.

Škoda Praha then proposed the Bank of China as an alternative financier of the project of the second block of the Thermal Power Plant.

Since the partner did not fulfill its obligations, the Government decided to terminate the contract at the end of last year.