Third chance for "Otilovići" with the support of partners

The Electric Power Company (EPCG) plans to announce a new tender for the construction of the small hydroelectric power plant (sHP) “Otilovići” in August, but since the previous two were canceled, they are also considering including international financial institutions as potential partners in financing the construction. If they do re-run the tender under the Public Procurement Law (PPL), the value of this deal will be 8.228.000 euros, as before.

This was officially stated to "Vijesti" by EPCG. Tender procedures for the construction of this small hydroelectric power plant on the existing dam have been ongoing for two years.

The last tender for “Otilovići” was announced at the end of last year, and was canceled in April this year, after EPCG determined that the bidding companies did not meet the technical requirements of the tender. The tender was conducted under the Public Procurement Law and included the construction of a small hydropower plant, the development of a main design and an Environmental Impact Assessment Study.

EPCG stated that according to projections, the Pljevlja Thermal Power Plant could cease operation by 2041, so timely construction of new energy sources is necessary, which is why "Otilovići" gains special significance as part of the transition for the municipality of Pljevlja and the north.

"EPCG plans to announce a new tender for the construction of the small hydropower plant 'Otilovići' during the current month, as part of a broader plan to develop production capacities from renewable energy sources (RES). If the tender is repeated under the Public Procurement Law, the project price will not change, while the tender documentation will be aligned with the new Public Procurement Law, which was recently adopted. This adjustment will ensure legal and technical compliance with applicable regulations, which increases the likelihood of successful project implementation. Given the previous unsuccessful tender procedures, EPCG is also considering additional approaches to ensure the successful closing of the financial structure and project implementation. In this regard, the possibility of involving international financial institutions as potential partners in financing the construction, with the application of appropriate guidelines for public procurement procedures, is open," the state-owned energy company emphasized.

They pointed out that such an approach would further ensure transparency, competitiveness and quality in the selection of contractors. EPCG reminded that a public debate was recently held on the adoption of the National Energy and Climate Plan, which clearly defines the directions for the future development of this sector, so the construction of new RES facilities was recognized as a priority for EPCG, which is already being done through the "Solari" projects, the "Gvozd" wind farm, the solar plant on Kapino Polje...

They emphasized that the construction of small hydropower plants would contribute to the stability of the system, strengthening the local economy and sustainable development of the community, but also that it is an important step towards achieving the strategic goals of EPCG and Montenegro in energy independence, environmental protection and climate responsibility.

The Otilovići SHPP would be built next to the existing dam on the Ćehotina River, which was built to supply water to the Pljevlja Thermal Power Plant back in 1982. Its capacity would be around three megawatts, and it is expected to produce around 11 million kilowatt-hours per year, enough to supply around 1.200 households.

EPCG told "Vijesti" in October last year that the expected construction period for this small hydropower plant is 18 to 24 months, and that they expect it to be operational by the end of 2026. Repeating the tender further delays this deadline.