(Podgorica, 28 March 2011) – Today MANS, Green Home and Forum 2010 called on the Government of Prime Minister Igor Lukšić to annul the tender for building hydroelectric plants on the Morača. The call was made because the government has failed to prove to the public the benefits of such a project for Montenegro’s citizens.
The Ministry of Economy has finally published international consulting firm Poyry’s report on the technical and economic aspects of the hydropower project. The report was published 10 months after the public debates on the Detailed Spatial Plan and the Strategic Impact Assesment, and 5 months after the debate on the Draft Concessionary Act.
Even though government representatives are calling this report a cost-benefit analysis, such a title cannot be justified if one examines the actual content of the document. The report fails to quantify significant environmental and social costs associated with the project, passing over them descriptively (contrary to best practices and European standards established in the Directive on Water).
Curiously, the consultants themselves recognize that these costs are high and that they could be quantified. The Ministry of Economy should therefore explain to the public why this wasn’t done, given the enormous resources expended over the last few years in preparing this project.
It is also incomprehensible that the report completely ommitted calculations for the potential costs related to seismic events given that the project is in an area susceptible to catastrophic earthquakes.
Because of the unprofessional approach to the preparation of such a complex project, it is no wonder that an eminent professor like Milenko Popović refused to participate in the development of an allegedly independent analysis of the economic effects of building the hydropower plants (eventually completed by government functionaries).
From the foregoing, it should be evident that Poyry’s report is not the type of cost-benefit analysis that will give a real answer to the socially beneficial nature of this project for the state. Along these lines it is worth noting that on the basis of the economic information alone contained in the report it would seem as if the construction of hydropower plants is only on the edge of being profitable (not including potential environmental and social costs).
Since the project foresees that Montenegro will finance much of the costs associated with the building of hydroelctric stations on the Morača, while the profits will be pocketed by the future concession holder, public concerns that the project will be to Montenegro’s disadvantage seem to have been justified.
It is worth noting that a year ago, when the Ministry of Economy began its campaign for this project, it made the claim that 4,000 new jobs would be created as well as contribute to 16,000 new beds in tourism. The report released by the Ministry makes no mention of this, making it obvious that the only reason this information was mentioned last year was to manipulate the public into supporting the project.
In the meantime it was also announced that qualified bidders like A2A and Enel are requesting that the deadline to submit bids be pushed back. As a result MANS, Forum 2010 and Green Home are calling on the government of Primer Minister Igor Lukšić to annul the tender for conessions in this project since it should be clear by now that the project offers no benefits for Montenegro’s citizens.
Dejan Milovac i Ines Mrdović – MANS
Žarko Rakčević i Dejan Mijović – Forum 2010
Darko Pajović i Jelena Marojević – Green Home
