In less than three years, citizens of Montenegro have paid nearly €4.7 million through electricity bills to the owners of the 10 small hydropower plants currently in operation, while the money has flowed into the pockets of privileged individuals close to the former Prime Minister Milo Đukanović or his party.
However, this is just the beginning, since with its National Action Plan for Renewable Energy, the Government has assessed that, in 2020, the fees citizens will pay for subsidies for electricity produced in small hydropower plants will reach the amount of nearly €27 million per year.
This fee was introduced in accordance with the Energy Law, in order to pay for subsidies and encourage the production of electricity from renewable energy sources. On the basis of alleged compliance with the EU Directive referred to earlier, the Law stipulates that, in addition to receiving this fee, the owners of small hydropower plants are also guaranteed that all of the electricity they produce will be purchased, as well as the right of priority in this purchase.
However, the EU Directive on the promotion of the use of energy from renewable sources, to which the Government refers, does not oblige states to provide such subsidies, as the Government of Montenegro has done.
MANS’ research shows that most of the owners of small hydropower plant-operating companies that are already producing electricity, or intend to do so, are directly related to the former Prime Minister Đukanović or his party. So far, the Government of Montenegro has approved the construction of over 50 small hydropower plants.
The Đukanović family entered the electricity business when two concessions were granted to a company owned by his son, Blažo Đukanović. Two more hydropower plants will also be built by Milovan Maksimović, Đukanović’s cousin, while Vuk Rajković, Đukanović’s best man, who is linked to a company which has been granted concessions for four hydropower plants, is also in the business. Out of those 4 hydropower plants, 2 are already working and, so far, citizens have paid them €400,000.
Aside from his family members, business partners of the former Prime Minister are also involved in the electricity business: concessions for several hydropower plants have been granted to companies related to Tomislav Čelebić, and also to Oleg Obradović, one of the key actors in the Telecom affair and former Board President of Prva banka, owned by the brother of the former Prime Minister.
A consortium involving Obradović, along with Ranko Ubović and Aleksandar Mijajlović, will build the largest number of hydropower plants: apart from the six that are currently operating, Obradović has been granted concessions for an additional 13 plants. To date, Obradović’s existing small hydropower plants have received €3.5 million.
The Government has granted permission for the construction of two small hydropower plants to the company “MN Power”, which is owned by the wife of NenadMićunović, a nephew of the controversial businessman Branislav Mićunović from Nikšić, who has been indicted in Italy for international smuggling of cigarettes.
In the middle of this year, a hydropower plant owned by the Kronor company also started operating, for which a €435,000 fee was paid. Two businessmen operating in the construction sector, Žarko Burić and Željko Mišković, are at the helm of Kronor, as well as Predrag Bajović, who is married to a sister of the former Prime Minister, and a member of the Main Board of the DPS, Igor Lukšić.
Lukšić’s father in law is also involved in the electricity business, as well as several other members of the Main Board of the DPS: for example, Stefan Savić, a member of Montenegro’s national football team, is one DPS Main Board members who has received a concession for small hydropower plant.
This network of people and companies linked with political leaders of the state has also spread locally; thus, it also involves members of the DPS’s municipal boards from Berane, Andrijevica and Kolašin.
At this moment, citizens are paying fees for the operation of two hydropower plants owned by Igor Mašović, a member of the DPS’s Municipal Board in Andrijevica: these plants have received€370,000. Igor Mašović is the brother of the Mayor of Andrijevica, Srđan Mašović.
Of the concessions that have currently been granted, almost half have been granted to individuals and companies directly related to Đukanović and the DPS.
Ines Mrdović
MANS Investigative Centre
