The small hydroelectric power plant (SHP) "Otilovići" worth 8.221.950 euros could be built by October 2027, with most of this year spent on developing the main project, the Environmental Impact Assessment Study and obtaining a construction permit, while field work would begin in the fall and last a year.
This was officially told to "Vijesti" by the Electric Power Company (EPCG) and the Podgorica company "Vigoris Ecotech", which are the investor and contractor for this project in Pljevlja.
Work on this project was previously announced by the energy company for spring 2022.
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 in 1982. Its capacity would be 3,2 megawatts, and it is expected to produce around 11 million kilowatt hours per year, enough to supply around 1.200 households. The contract for the construction of this project is worth 8,22 million, and was signed on January 23 by the executive director of EPCG Zdravko Dragas and CEO of “Vigoris Ecotech” Sinisa Visnjic.
EPCG emphasized that the planned construction period is 20 months, of which eight months will be spent on the main project, its revision, obtaining a building permit and introducing the contractor to the work - and then, from October 8, the plant itself.
"Vigoris Ecotech" explained that they will have to complete the main project and the Study within six months of signing the contract, after which they will have another two months to obtain the approval of the auditor, the Environmental Protection Agency and a building permit.
"Upon obtaining the building permit, the client will introduce us to the work within seven days, after which we have a 12-month deadline for the execution of the works. If everything goes according to plan, the deadlines are as follows: Preparation of the Main Design and Study by July 23, 2026, obtaining the approval of the auditor and the Environmental Protection Agency by August 23, obtaining the building permit by September 23, and introduction to the work no later than September 30, 2026. The deadline for the execution of the works is September 30, 2027," the company told "Vijesti".
They guarantee the works with 679.500 euros.
According to the signed contract, which "Vijesti" has access to, "Vigoris Ecotech" performs the design and installation on a "turnkey" basis, i.e. the agreed price includes the value of all unforeseen works and surplus works, and excludes the impact of shortages of works on the price.
The Podgorica-based contractor will have to provide a three-year guarantee for the constructed "Otilovići", while it will also submit a performance guarantee of 679.500 euros for the project, and will also bear the cost of insuring the goods during transport in the amount of 110 percent of the same. They will provide the EPCG expert team with insight into the degree of project completion, submit the main project for approval, manage the construction site at their own expense, while EPCG will appoint an expert team, provide an auditor for the main project, provide expert supervision, appoint a Commission for Acceptance, and pay for the work regularly...
“The contracting parties accept that the amicable resolution of any disputes will not affect the deadlines for the performance and quality of the contracted works. In the event that such a resolution is impossible, the contracting parties accept that any disputes shall be resolved exclusively by the Commercial Court of Montenegro, or that they exclude the possibility of resolving any disputes before arbitration or judicial instances that have their headquarters outside the borders of Montenegro. The contract may be terminated by agreement or unilaterally. If the parties terminate the contract by agreement, the termination agreement shall determine the mutual rights and obligations arising from the termination of the contract and which were due on the date of conclusion of the termination agreement in question," the contract states.
EPCG's expert team will control the main project with an auditor, after which they will send a report to "Vigoris" with possible changes. After submitting a positive report, the main project will be approved, and EPCG's expert team will initiate the process of obtaining a construction permit.
“Vigoris Ecotech” will also be obliged under the contract to pay EPCG a daily fine of two per mille (one thousandth) of the total value of the work, or 8,2 thousand euros, in the event of delay, while these fines cannot exceed ten percent of the total value of the contract. EPCG will make payments for “Otilovići” gradually and in parts after the submission of the main project, its approval, obtaining the consent of the Environmental Protection Agency for the Study, obtaining a building permit, delivery of materials, completion of testing and commissioning of the plant, acceptance of works...
“Vigoris” won the contract to build the “Otilovići” small hydropower plant in the third tender for this project, which EPCG announced on September 17 last year, and lasted until November 5. The first procedure for selecting a contractor for “Otilovići” was announced in May 2024, but was canceled at the end of that year after EPCG continued the tender, although one of the bidders filed an appeal. The second tender was announced at the end of 2024 and was canceled in April last year, because EPCG determined that the bidders did not meet the technical requirements of the tender.
This small hydropower plant is important because it will provide new energy sources after the planned shutdown of the Pljevlja Thermal Power Plant by 2041, making it a key part of the energy transition and development of the municipality of Pljevlja and the entire north of the country.
This small hydropower plant is important because it will provide new energy sources after the planned shutdown of the Pljevlja Thermal Power Plant by 2041, making it a key part of the energy transition and development of the municipality of Pljevlja and the entire north of the country.
The project has been long awaited
In September 2021, the government gave the green light for a concession to use water for the construction of hydroelectric power plants in Montenegro, namely for the valorization of water potential from the "Otilovići" reservoir next to the existing dam, which would use the excess water flowing from that location.
The then director of EPCG Nikola Rovčanin said that he expects the tender for the hydroelectric power plant to be announced by the end of 2021, so that work could begin as early as spring 2022 - which did not happen for the next four years.
He said at the time that the construction of the Otilovići small hydropower plant had been analyzed since the beginning of the dam's construction in 1981 and that the project documentation had been revised in 2001 and 2011, but that the project had never come to fruition.
The government issued the urban planning and technical conditions for "Otilovići" in July 2023.
Bonus video:
