Montenegrin state-controlled power utility Elektroprivreda Crne Gore (EPCG) said that the most favourable bid for the construction of a second unit at thermal power plant (TPP) Pljevlja was filed by Skoda Praha.

In March, EPCG said it had unsealed the final bids submitted by Skoda Praha and by the China Machinery Engineering Corporation (CMEC) for the construction of TPP Pljevlja's second unit.

The Czech company has offered to build a 254 MW unit with electric efficiency of 39.5% for 338.5 million euro ($377.3 million) with an annual production of 1,600 GWh, EPCG said in a statement on Thursday.

Back in March, EPCG said CMEC had offered to build a 250 MW unit with an electrical efficiency of 39% for 326 million euro.

The power utility said it will start talks with Skoda Praha on all elements of the construction contract that will be signed if this investment moves forward.

EPCG said it will continue to seek with the advisory assistance of UniCredit Milano a potential co-investor for the second unit of TPP Pljevlja.

The construction of the new unit at TPPPljevlja should support Montenegro's independence in terms of energy supply as well as improving the reliability of supply and helping position the country as electricity exporter.

EPCG, which plans to raise output to 3,159 GWh this year from 3,036 GWh in 2014, operates around 870 MW of installed generation capacity. Its net profit rose 38% to 34.7 million euro in 2014.

Source: SeeNews