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Montenegro

SIX- YEAR CONTRACT 29. 01. 2013.   >>  12:32 0

SIX- YEAR CONTRACT

Government prepares a contract on supplying KAP with EPCG

The government is well on its way to definy a six-year contract with Electric Power Industry (EPCG) for the supply of Aluminum Plant (KAP) of electricity, under acceptable conditions, says Montenegrin Prime Minister Milo Djukanovic.

He believes that it is necessary to define a stable agreement on electricity supply  so that  production in the KAP could function in a sustainable manner.

"And in that part of the problem we got in, and I think we are on track to reach an agreement with the EPCG on six-year contract on power supply under acceptable conditions. We believe that the six-year period is sufficient that the owner of KAP, whoever it is,  a state or a future owner, could define its own source of power supply factory and then think about whether it is rational to increase production ", Djukanovic said to  Radio Montenegro station.

Electricity Aluminum Company currently owes about 60 million EUR for electric energy. In the middle of the month, account of the KAP has been blocked , and shortly afterwards has been also lifted after the company EPCG paid about EUR 550 thousand in arrears for electricity.

Djukanovic said that the current strategic partner in KAP, Central European Aluminum Company (CEAC), recently did not show enough interest to take over all development measures that are necessary if we want to preserve the perspective of the aluminum industry, despite several opportunities given to it and provided by the Government.

KAP still has a future and can work at the level of 50 thousand tons of production, with at least, 600 people, says Prime Minister Djukanovic.

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