The contract for the reconstruction of SHPP Slap Zete and Glava Zete in Montenegro has been terminated

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The Polish company DRE Gdansk is leaving the work of reconstruction of small hydroelectric power plants Slap Zeta and Glava Zeta. As an official reason for the termination of the contract, he cites force majeure – the COVID-19 pandemic and the financial situation in the company, they told the daily Dan from EPCG.

Polish company ZRE Gdansk S.A. unilaterally terminated the contract with the company Zeta Energi, which is majority owned by the state-owned Elektroprivreda (EPCG). It is about the work of manufacturing, delivery, testing, installation, commissioning of electro-mechanical and hydromechanical equipment and preparation of supporting documentation (main – construction and design of the completed condition) for the reconstruction of SHPP Slap Zete and SHPP Glava Zete – worth about 6.8 million euros.

EPCG confirmed on Tuesday that the contract was unilaterally terminated due to problems caused by the outbreak of the coronavirus pandemic.

Pursuant to the Law on Public Procurement, on January 28, 2021, Zeta Energy published information on the unilateral termination of the contract by the company ZRE Gdansk SA on the public procurement portal. from Poland. Namely, the company ZRE Gdansk S.A. from Poland, on January 11, 2021, made a decision on unilateral termination of the contract for the reconstruction of small hydroelectric power plants Slap Zeta and Glava Zeta. As an official reason for the termination of the contract, this company cited force majeure – the Kovida-19 pandemic and the financial situation in the company ZRE Gdansk “, they stated from the Corporate Communications Department of EPCG when asked by Dana.

They added that in accordance with the realization of the project and the payment schedule, the company Zeta Energi paid 90 percent of the total value of the signed contract for the performed works.

“The remaining amount of 10 percent of the value of the contract will be used to complete the remaining activities on the reconstruction of the small hydroelectric power plant Glava Zeta.” Zeta Energy is also in possession of bank guarantees issued by ZRE Gdansk, which are also the provision of funds, more than enough to complete the project. We note that the small hydroelectric power plant Slap Zeta is fully functional and the production process is carried out in accordance with the defined plan, “said EPCG.

Although in the contract with ZRE Gdansk S.A. The amount of 6.8 million euros was stated, the executive director of the company Zeta Energi Dragan Vlahović said at the end of August last year that over eight million euros were invested in the project of reconstruction of two small hydroelectric power plants.

“In technical terms, the result of this investment will be an increase in production by 30 percent compared to previous production,” it was published on the official website of EPCG.

Source: dan.co.me