One offer was received for the lease of the Ironworks

The second public call for the lease of the Steel and Forge plants has expired, the bids will be opened on Wednesday

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The minimum investment for five years is 25 million (illustration), Photo: Svetlana Mandić
The minimum investment for five years is 25 million (illustration), Photo: Svetlana Mandić
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

At the second international public call for the lease of the Steel Plant and Kovačnica plant, as part of the Nikšić Ironworks, one offer was received.

This was officially told to "Vijesta" from Elektroprivreda (EPCG).

EPCG announced the second public invitation for which bids could be submitted today until ten o'clock on March 28.

"By 10 o'clock, one offer arrived. The opening will be on Wednesday to see if another offer may arrive by mail," the state energy company said today.

Three applications were received for the first call for the lease of iron works - from the Swiss company 8B Capital SA, a consortium consisting of the Nikšić company Neksan Miodrag Daka Davidović, the Chinese Universal Energy and the Czech Energy & Industrial Management Advisory Services, and the Swedish consortium Kvalitets Bygg - Uber Nordic. Two consortia were then excluded from the bidding for Željezara because these potential investors demanded certain conditions that could not be fulfilled, so only the Swiss company remained in the game, with whom the talks continued, but that offer was also not accepted due to technical deficiencies.

In the second public call, it was stated that the EPCG Commission will send an invitation for negotiations to the submitters of the received bids.

"The advantage when choosing a business partner will be given to companies that base their production agenda on the production of so-called "green steel" and that submit a plan for the development of production facilities of Steel and Forge plants for the next five years, with an emphasis on planned investments (improvement of existing production from technical and technological aspects and possible investments in new production facilities).The minimum period for starting production that the bidder can offer is six months, while the maximum period for starting production that the bidder can offer is 12 months. If the bidder offers a period for starting production that is longer than 12 months , that bidder will not be considered," the invitation states.

The minimum lease period that the bidder can offer is five years. It is specified that the maximum number of points will be awarded to the bidder who offers a lease for 10 years or longer (the lease period cannot be shorter than five years), and if the bidder offers a lease that is shorter than five years, he will not receive points in this category.

The minimum monthly rent is 30.000 euros, and the maximum can be 150.000 euros.

"The bidder who offers the highest amount of monthly rent, which is greater than 30.000 euros per month, will receive the maximum number of points in this category. If the bidder offers the amount of monthly rent that is less than 30.000 euros, that bidder will not be considered. The minimum investment amount that the bidder can offer for the first five years is EUR 25 million. The minimum number of employees that the bidder will take over in the first 12 months cannot be less than 100, while the maximum number of employees that the bidder will take over in the first 12 months is 150. If one of the bidders offers to take over 150 employees in the first 12 months, will receive the maximum number of points in this category. If any of the bidders offers to take on less than 100 employees for the first 12 months, that bidder will not be considered further," the public invitation reads.

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