The representative of the Commission in front of the Electric Power Company of Montenegro (EPCG), Miro Vračar, announced that the offer of the Swiss company 8B Capital SA for the lease of the Ironworks and Kovačnica facilities, as part of the Nikšić Željezara, is unsatisfactory.
That company was the only one to apply for another international public call.
Vračar, after considering the offer, said that as far as the Swiss company is concerned, there is neither a bank guarantee nor a deposit payment and that they must state that the offer is unsatisfactory.
"After this, all interested parties can apply for a negotiation procedure where we will probably offer a proposal for a lease agreement and offer such a proposal to all interested parties," said Vračar. The contract offer will define all the details that will be the subject of the lease," said Vračar.
According to him, a number of companies expressed interest in Željezara, but they did not apply for the public invitation, so he expects them to join the negotiation process. The commission is optimistic, as Vračar said, that a tenant will be found for the ironworks' facilities, as well as that the contract offer will not differ much from the conditions that were in the public invitation.
In the public call, a three-month guarantee in the amount of 1,5 million euros was requested, which will be considered in the negotiation process because many interested companies have just asked for the amount of the guarantee to be reduced.
The Swiss company 8B Capital SA was also eliminated in the second round in the previous advertisement due to unsecured bank guarantees.
"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 was specified that the maximum number of points will be awarded to the bidder who offers a lease for ten years or a longer period.
The minimum monthly rent is 30.000 euros, and the maximum is 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.
The representative of the Ministry of Energy and Mining, Vesna Brajović, said that they were disappointed that the second invitation did not succeed and that they hope that there will be other companies in the negotiation invitation and that they will find a credible investor who will start production at the Ironworks.
Even before considering the offer, Vračar said that the Swiss company's offer was unsatisfactory, but that the Commission would withdraw to consider the offer and officially announce the result.
Vračar then briefly said that the Swiss company did not submit the required bank guarantees, just like during the first competition.
As he explained then, after the end of the second public call, the negotiation process will be started with all interested companies, without asking for bank guarantees.
Igor Šamiz thanked the line ministry and EPCG for their professionalism and cooperation and briefly said that he will participate in the negotiation process, as well as that he hopes that the conditions will satisfy the interested investors.
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