Elektroprivreda Crne Gore (EPCG) has reopened its public call for leasing the Steel Plant and Forging Shop, operated by its subsidiary Željezara Nikšić. The Swiss company 8B Capital, led by businessman Igor Šamiza, has resubmitted its bid, accompanied by a deposit of EUR 30,000.
The proposal from 8B Capital outlines an investment of EUR 7.75 million within the first year of the lease and a total of EUR 36.85 million over the next five years. The company plans to commence production within six months and hire 152 workers. They have also offered to pay a monthly lease of EUR 31,000.
According to the proposal, steel production is expected to reach 2,000 tons per month after the first year, with an increase to 3,500 tons per month projected within five years.
Miro Vračar, a member of the selection committee, stated that despite some negative media reports, 8B Capital is regarded as a serious investor. The committee anticipates finalizing the lease agreement with 8B Capital within the next one to two months.
Vračar expressed optimism about the project, expecting it to benefit Nikšić and Montenegro. He noted that 8B Capital aims to revitalize the plant starting in the fall, gradually hiring workers, updating equipment, and reaching a production level of 2,000 tons per month within the first year.
The contract will not initially define the price of electricity for the plant. This will be negotiated separately after the lease agreement is signed, along with the applicable law and arbitration procedures.
The commission’s report on the proposal will be sent to the EPCG Board of Directors. Given that this is a lease agreement, the Board has the authority to make the final decision, but the details will also be reviewed by the Government, which holds the majority stake in EPCG.
The public call was issued following a recommendation from the Minister of Mining and Energy, Saša Mujović, to align the 50-year lease proposal with the public call requirements. The initial lease terms were for five to ten years, but the new call allows for leases ranging from 15 to 50 years.
EPCG previously negotiated with Igor Šamiza, who expressed interest in a 50-year lease. The EPCG Board of Directors did not approve a draft contract allowing Šamiza potential ownership after meeting certain conditions, as this was deemed illegal by Bojana Ćirović, the property rights protection advisor. Instead, a revised draft was approved, including a 50-year lease term.
The new public call stipulates that the minimum monthly lease is EUR 30,000, with a maximum of EUR 150,000. Additionally, the minimum number of employees to be hired within the first six months is 100, with a maximum of 150.
EPCG has stated that the public call aims to preserve and enhance steel production at the factory, which has a history spanning over 65 years. The selected bidder must provide a detailed five-year investment plan for upgrading existing facilities, machinery, and equipment, as well as a strategy for increasing production and investing in new technology.
