The Government of Montenegro even after the public hearing did not give a clear answer to the question in whose interest is the construction of the second block of the thermal power plant in Pljevlja. MANS submitted today a set of comments on the draft of the Detailed Spatial Plan (DPP) and Strategic Environmental Assessment (SEA) for the construction of the second block of thermal power plant in Pljevlja, which indicates that it is not confirmed the economic viability of this project, and that its implementation would lead to an increase of electricity bills, and the new government subsidies for the National Electric Company (NEC) and coal Mine Pljevlja, as companies involved in the entire project.
Public discussion of the draft of the DSP and SEA ends today, and the entire process is marked by a complete non-transparency, as it is hidden from the public the viability study which served as the basis for economic – market projection of the project. The study was conducted at the end of 2012 for the needs of NEC, and in the draft of the DPP are shown only limited data that are largely incomplete and manipulative, while the complete study document is still hidden from the public.
It is amazing that the economic – market projections for the construction of the second block is displayed on only seven pages, in which authors only counted investment of the construction of thermal power plant designed for the amount of 366 million euros, while a number of other costs are not projected that are an integral part of the project.
So the costs of interest on the loan for the construction of the second block are not shown, which initially the value of the investment increases to half a billion euros, then the cost of expropriation or opening new mines, which are in the government’s information from July 2013 shown in the amount of 145 million euros.
MANS said in the comments that the costs of reconstruction of the existing first block are also not shown, about which earlier NPC announced that they could cost 100 million euros, following by the construction of associated electrical energy infrastructure, closure of landfill in Maljevac in the amount of 4 million, the opening of a new landfill in Sumani, and at least additional one by the end of the second block of 40 years.
The cost of construction of Block II of TPP Pljevlja
Construction 50 mil. euros
Equipment with installation 270 mil. euros
The costs of opening new mines 145 mil. euros
The cost of reconstruction of the block I TP Pljevlja 100 mil. euros
Cost of closure of landfill Maljevac 4 mil. euros
Total use of the data 569 mil. euros
The costs of expropriation ?
Construction of energy infrastructure ?
The opening of new landfills for ash and slag ?
Opening of new landfills ?
Revitalization of Borovicko lake ?
Environmental costs ?
Health care costs ?
The final total price of Block II TPP Pljevlja ?
Also, the authors did not present as well how much it will cost to revitalize Borovicko lake, and also the overall protection of the environment and the health of the population, which is at least several hundreds of million of euros, or revitalization of the Second thermal power plant after a working life of 25 years, all of which suggests that the overall price of the project could significantly exceed one billion euros.
The extend of how much is the draft of the DSP based on arbitrary data that are subjects to manipulation, shows and the fact that as one of the key reasons for the construction of new thermal power plant is stated deficit of electricity, where the estimate of the deficit was made on the basis of consumption that includes the work of Aluminium Plant Podgorica, as a consumer who annually spends about a third of the total electricity in the country.
Data relating to the energy deficit are from 2012, which the authors have taken as the base, although Montenegro as early as next year, just for the most part because of the situation in APP, had a surplus of electricity.
The authors of the DSP did not take into account the fact that in the meantime the APP became a private company, whose owner in a free market by itself has to provide for the purchase of electricity, and that it is not the obligation of the state anymore.
Also, it is indicative that the return on investments was calculated in the amount of 8.9 percent, although this rate is currently at a lower level. Return on investments is one of the key elements that dictate the height of the electricity bills according to the methodology of the Energy Regulatory Agency, and if is applied to this percentage, and also calculating the value of the investment in the construction of the second block, it is clear that in the coming period it would come to a significant increase in account supply.
As well, the possible construction of a new thermal power plant will lead to new employment and will not generate significant economic benefit on that basis, as it would employed in second block from 50 to 100 people, which is explained by the fact that the modern technology would be incorporated that requires a smaller number of employees compared to the current level of employment in the TPP Pljevlja.
All of this demystifies the Government’s project and indicates an extremely unserious intention to enter into another uncertain investment adventure, which can have far-reaching adverse consequences not only on the environment and health of the population of Pljevlja in that city, but also the wallets of all taxpayers.
MANS, given the incompleteness and inconsistency of the draft of the DSP and SEA, asked the Ministry of Sustainable Development and Tourism to finish the documents and to publish supporting documents, and after that to organize a public hearing, at which to the citizens will be presented valid and relevant, and not handling data.
MANS
