The purchase of the highway power grid is awaiting analysis

Monteput is checking whether the handover of the electricity infrastructure on the Smokovac - Mateševo ​​section is profitable for them in the long term. The Montenegrin Electric Distribution System claims that they are ready to take over several transformer stations and facilities.

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Elektromreža paid 38,2 million euros: Power lines on the highway, Photo: Monteput
Elektromreža paid 38,2 million euros: Power lines on the highway, Photo: Monteput
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The Montenegrin Electricity Distribution System (CEDIS) is obliged, under a contract from 2019, to purchase the electricity network built by Monteput on the first section of the Bar - Boljare highway, but the conditions for this deal have not yet been created. The value of the purchase of transformer stations, facilities and other equipment is currently unknown, because, as CEDIS told "Vijesti", it must be legally determined by an independent appraiser.

They added that Monteput has not yet fulfilled its part of the obligations under the contract, so they cannot begin this process yet.

Monteput told "Vijesti" that they do not yet have specific obligations with the power companies regarding the construction of the electricity network for the remaining sections of the highway, which is why they are now working on analyses and solutions for the functionality of the entire system and electricity supply. They emphasized that they do not want different parts of the infrastructure on the sections of the highway to have different owners.

"Monteput has taken a series of steps as a prerequisite for decision-making by the competent state authorities with the aim of high-quality, rational and long-term resolution of the issue of construction, functioning and exploitation of the infrastructure for supplying the highway with electricity, as well as the possible review of previously made decisions that were not preceded by a detailed analysis. All activities are aimed at finding solutions that should ensure the optimal functioning of the Bar - Boljare highway as one of the strategically very important systems in Montenegro. A prerequisite for this is a stable and reliable supply of electricity. A situation in which different parts of the electricity infrastructure on individual sections would belong to different entities could be unfavorable from the point of view of the functionality of the system as a whole," Monteput said.

The electricity network, together with the Smokovac interchange, the water supply network and access roads to other interchanges, was part of the "forgotten" works that were not included in the contract for the construction of the first section, which was signed by the then Minister of Transport. Ivan Brajović with the CRBC company. Thus, Monteput had to build the electricity network later, which they financed with a loan from the then Investment and Development Fund in the amount of 38,23 million euros, while the network was built by the companies "Novi Volvox" and "Elektro team".

CGES has already taken over part

Monteput explained that according to the letter of intent from 2014, signed by the Ministry of Transport and Maritime Affairs, the Montenegrin Electricity Transmission System (CGES) and the Electric Power Company (EPCG) because CEDIS did not yet exist, it was envisaged that EPCG, after the construction of transmission lines and substations, would conclude an agreement with them on the method and deadlines for taking over the electricity network. They claim that based on that letter, an agreement was signed regulating the rights and obligations regarding the construction of the infrastructure necessary to supply the first section of the highway with electricity, which Monteput would build at its own expense.

They pointed out that CGES has already taken over the high-voltage part of the power grid, and that they are looking for solutions to the problem of supplying electricity to the highway because, as they claim, this has not been worked on previously.

"To this end, external collaborators have been engaged to prepare several analyses and studies. An analysis of the advantages and disadvantages of implementing activities on the takeover of the TS 20/04 kV system on the priority section of the highway by CEDIS has been carried out. A study was prepared, a concept for supplying the highway with electricity by a commission consisting of representatives of CGES, CEDIS and Monteput (June 2023), as well as its appendix, which also included representatives of EPCG (November 2024). An analysis of the advantages and disadvantages of the supply options in the variants that the TS 20/0.4 kV remain in the ownership of Monteput, in relation to the variant that the transformer stations are taken over by CEDIS, was prepared by a commission consisting of representatives of EPCG, CGES, CEDIS and Monteput (December 2024). The implementation of a public procurement is underway with the task of preparing a Techno-economic study of the use of solar potential along the route of the highway for the production and use of electricity, which should be taken into account "considers and defines the advantages and disadvantages of technical solutions depending on the voltage level of the highway consumer's connection to the power supply," said Monteput.

CEDIS pointed out that under the 2019 contract, they must purchase 20kV plants with secondary equipment in the 110/20kV transformer station (TS) "Mrke", the same plants in the "Mateševo" TS, a 20kV cable distribution that, with these two, supplies the 20/0.4kV TS for the needs of the highway and other users, as well as 26 20/0.4kV transformer stations with remote control, which supply facilities of the highway and other users along the route.

"The aforementioned power infrastructure, which is planned for purchase, must be assessed by an independent appraiser in accordance with legal regulations, which means that at this moment it is not possible to know the value in question. In accordance with the contract in question, CEDIS has committed to purchase the aforementioned power infrastructure, after creating the conditions for its purchase. As the other contracting party has not yet fulfilled its contractual obligation, the conditions for initiating the activities of the Montenegrin Power Distribution System for the purchase of infrastructure have not been provided," CEDIS said.

The construction of the electricity network cost 38,2 million euros.

The construction of the electrical network on the highway was awarded to Podgorica's "Novi Volvox" in a tender concluded in September 2019, with two lots of works worth 29,4 million euros, while Budva's "Elektro team" received one lot worth 8,7 million.

This was the second tender in a row after the first was cancelled in August of that year, because the bids of these companies were assessed as incorrect. The permanent power supply system for the highway was put into operation in May 2022.

The construction of the power grid was originally supposed to cost 31,6 million euros, but Monteput, unlike the Chinese "CRBC", had to pay value added tax (VAT), so the final bill was 38,2 million euros. In addition to the additional cost of VAT, Monteput also paid additional interest for the unplanned part of the debt of 6,6 million euros.

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