Czech Export Bank has trouble providing financing for TPP Pljevlja project – Montenegro, 26 October 2016

Since Czech Export Bank (CEB) informed the representatives of Montenegrin power utility EPCG and the company Skoda Praha that the bank is having trouble providing financing for the project for the construction of second unit at thermal power plant Pljevlja, the Montenegrin Government announced that it will not provide guarantees for the project.
The bank cited difficulties in obtaining Government guarantees as the main problem, because the Government previously refused the bank’s request that the state should be a guarantor for the loan that should be used for financing the project. Czech Exim Bank insisted on obtaining guarantees from both the state and EPCG during negotiations, but the state refused to provide any guarantees since it was not a requirement in the public tender in 2013.

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