Monteput has given up on selling part of the electricity network they built on the Smokovac - Mateševo highway section, because analyses they conducted with the Montenegrin Electricity Distribution System (CEDIS) and the Montenegrin Electricity Transmission System (CGES) showed that its sale would increase electricity costs, complicate the management system and jeopardize the operations of this state-owned company.
This, among other things, is stated in the documentation for granting consent to Monteput to abandon the sale of distribution infrastructure, which was adopted by the Government.
The electric 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 of the highway, signed by the then Minister of Transport Ivan Brajović with the company “CRBC”. Thus, Monteput had to build the electric network later, which they financed with a loan from the then Investment and Development Fund (IRF), now Razvojna banka, in the amount of 38,23 million euros, while the network was built by the companies “Novi Volvox” and “Elektro team”.
CGES has already purchased part of the power grid, while Monteput has been working with CEDIS since 2019 to sell the remaining 20/0.4 kilovolt (kV) substations (TS), 20 kV cables and other equipment. This process has now been abandoned, as analyses and studies have shown that it is better and more profitable for Monteput to retain ownership of this and future power infrastructure.
"The analysis does not only deal with the Smokovac - Mateševo section, but also assesses the effects on the entire highway. It shows that the expected costs for electricity would be significantly higher and less favorable for Monteput in the event that the purchase agreement with CEDIS is implemented, especially from the perspective of the functioning of the entire highway, where it is estimated that the difference in electricity costs could be in the millions on an annual basis. In the conclusion of the report, which deals with the analysis of the advantages and disadvantages of the sale or retention, it was stated that the sale (or transfer of management and maintenance responsibilities) would pose a major problem for the functioning of the highway management system," the documentation states.
It was additionally noted that, in the event of a change in the method of calculating electricity consumption by switching to a low-voltage level, the financial effects would be extremely unfavorable for Monteput and could seriously jeopardize the entire business system.
Based on analyses and studies, Monteput requested the Ministry of Transport to carry out the procedure and for the Government, as their founder and owner, to issue a conclusion on retaining the substation and other equipment, which was in the meantime approved by the Ministry of Energy and Mining.
It is also stated that Monteput made the decision due to a study on the use of solar potential for electricity production along the Bar-Boljare highway route. This study was carried out for 30.189 euros by the company "Permonte" with the subcontractor "Universal Engineering" after they were selected in a tender in May this year. The document analyzed whether solar panels could be installed and used to produce electricity on the Smokovac - Mateševo route, because the operation of the highway, especially when it is fully built, will require huge amounts of electricity.
"The study of the use of solar potential unequivocally shows that the highway has significant potential for the construction of solar power plants on landfills, roofs, canopies and sound walls. The key conclusion of the study is that the connection of solar power plants at a 20 kV voltage level would be significantly more favorable compared to the connection at 0,4 kV. The study showed that, from the perspective of the use of solar potential, keeping the TS and 20 kV infrastructure owned by Monteput, as well as a centralized method of calculation - is an energetically and economically more cost-effective solution," the document states.
After the construction of the electricity network for the first section, the Government, by its conclusion of January 2023, gave its consent to the sale of part of the TS 110/20 highway 1 and 2 in Mrke and Mateševo, with the connecting 110 kV transmission lines, after which a contract was concluded with CGES. Monteput sold the infrastructure for 16.607.632 euros, which they paid to Razvojna banka to settle the loan, while they paid almost 200.000 euros in compensation for land acquisition into the state treasury.
It is emphasized that Monteput must repay another 11.082.351 euros through a loan from Razvojna Banka, and that the last installment is due at the end of May 2030.
The electricity grid fee was 38,2 million
The construction of the electrical network on the first section of the highway was awarded to Podgorica's "Novi Volvox" through two lots of works worth 29,4 million euros, according to a tender concluded in September 2019, while Budva's "Elektro team" won 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 price was 38,2 million euros.
In addition to the additional cost for VAT, Monteput also paid additional interest for the unplanned portion of the debt of 6,6 million euros.
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