CASE STUDIES

Pljevlja II, Montenegro

Pljevlja I

Pljevlja I plant and mine

This 220 MW lignite power plant is still in the planning stage as of May 2014. Although no proper tender procedure took place, the project attracted bids of various kinds from numerous Chinese companies: CMEC, CNEEC, CEE Holdings, Gezhouba Group, and Hubei-Powerchina. Other companies which submitted bids are Skoda Praha from the Czech Republic, Istroenergo from Slovakia and Pol-Mot from Poland.

The Montenegro government invited offers with efficiency levels of 40 percent, but when none of the companies submitted bids at this level, it lowered the requirement to 38 percent. Still some of the Chinese companies and the Slovak consortium were not able to comply (pdf) with this requirement. Although the government set the emissions levels in line with the Industrial Emissions Directives, none of the Chinese companies or the Slovak consortium submitted offers in line with these standards.

At the same time, government press releases and documents made it clear that it had been receiving delegations from the Czech Republic and China and that both countries had made it clear that their state banks may be interested in supporting the project. Therefore, when Montenegrin NGO Green Home decided to contact potential investors in the project, they wrote not only to the companies, but also to the China ExIm bank, the Czech Export Bank and the Czech Export Guarantee and Insurance Corporation (EGAP). Out of these, so far only the Czech company has responded.

In December 2013, the Montenegro government shortlisted two Chinese companies, the Slovak consortium and the Czech company. At the time of writing the selection of companies is not yet completed.

More up-to-date information can be found on the Bankwatch website.