The Electric Power Company of Montenegro (EPCG) has reissued a tender for the construction of the Otilovići small hydroelectric power plant (mHE), valued at 6.8 million EUR excluding VAT, with bids due by January 31.
The tender was officially published on December 30, according to Vijesti.
This follows the cancellation of the previous tender, worth 7 million EUR excluding VAT, on December 24. The Commission for Protection of Rights in Public Procurement Procedures annulled the tender after finding that EPCG proceeded with the process despite a complaint filed by the Permonte/Banstroj consortium.
This decision is subject to appeal within 20 days from its publication.
In October, EPCG told Vijesti that the expected construction timeline for the hydroelectric plant was 18 to 24 months, with the goal of commissioning it by the end of 2026. However, the cancellation and reissuance of the tender could further delay this timeline.
The initial tender, issued on April 30 last year and running until June 28, had an estimated value of 8.47 million EUR. Three bids were received from the Permonte/Banstroj consortium, the Elnos Engineering consortium, and Vigoris Ecotech. On September 12, the Vigoris Ecotech bid, valued at 6.79 million EUR excluding VAT, was selected as the most favorable. The decision was open to appeal for 10 days.
The Permonte/Banstroj and Elnos Engineering bids were excluded from consideration because their documents were improperly completed. On September 23, Permonte/Banstroj filed a complaint against the selection of the best bid. EPCG rejected this complaint on September 30, arguing that the complaint had been submitted by a non-participant in the tender.
EPCG specifically contested the fact that the complaint was signed by Bojan Bošković from Permonte, stating that he was not authorized to do so and that there were discrepancies in the names of the consortiums filing the complaint and submitting the bid. In mid-October, Permonte/Banstroj appealed EPCG’s decision, arguing that while their complaint may have been improperly filed, it should not have been rejected without consideration, and requested that the Commission annul EPCG’s decision.
On October 15, EPCG reiterated its stance, asserting that the complaint was groundless and should be rejected, as failing to do so would be unlawful. They emphasized that Bošković was not authorized to file the complaint, as no authorization was provided before the complaint was rejected.
The Commission concluded in late December that Permonte’s original complaint about the selection of the best bid was correctly filed and that EPCG had wrongly rejected it. The Commission also stated that EPCG should have requested the submission of authorization for the complaint.
The Commission’s decision highlighted that EPCG had violated public procurement regulations by amending and supplementing the tender documentation after the complaint was filed.
The Otilovići hydroelectric plant will be built alongside the existing dam on the Ćehotina River, originally constructed in 1982 to supply water to the Pljevlja Thermal Power Plant. The plant will have an estimated capacity of around 3 megawatts and is expected to produce approximately 11 million kilowatt-hours annually, enough to supply around 1,200 households.
