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HomeEconomyAppeal withdrawn, Ćehotina is being relocated by a company from Vlasotince

Appeal withdrawn, Ćehotina is being relocated by a company from Vlasotince

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Appeal Withdrawn: Ćehotina to be Relocated by Vlasotince-based Company

Location near the current mine in Ćehotina: Pljevlja, Photo: Goran Malidžan

The “Aquamont” consortium has decided to withdraw its appeal regarding the selection of the most advantageous bid for relocating the Ćehotina riverbed. This means the prior decision to award the contract, valued at 16.2 million euros to the company HSV from Vlasotince, stands.

Yesterday, the Commission for the Protection of Rights in Public Procurement Procedures announced that the appeal process has been halted due to this withdrawal.

On December 31 of last year, the coal mine issued a tender for relocating the Ćehotina River, necessary for the expansion of the new mine expected to supply the Pljevlja Thermal Power Plant from next year.

The tender’s technical specifications outlined 166 required work types. During January and February, ten clarifications and amendments to the tender documentation were released. On February 11, “Izomont MNE” lodged a complaint against the tender documentation, specifically concerning the professional and personnel references needed, which was subsequently denied.

On March 18, the Coal Mine announced the selection of the most favorable bid, accepting HSV’s proposal of 16,169,336.60 euros—approximately 90,000 euros less than the estimated cost detailed in the tender documentation. HSV’s subcontractors include “Geo-start” from Podgorica, “Kolubara” from Mionica, and “Opticus ING” from Belgrade.

As a result, the Coal Mine rejected the second, invalid bid from a consortium consisting of the Herceg Novi-based company “Aquamont,” along with “Aqua Mont Service” and “Hidrotehnika-Hidroenergetika” from Belgrade. This consortium, owned by businessman Aleksandar Milosavljević, submitted an offer of 15.04 million euros, about 1.2 million below the winning bid.

The Tender Commission excluded this consortium from the public procurement process due to incomplete documentation regarding their economic ability, as specified in the tender criteria, particularly concerning the outlined percentage participation of their subcontractors.

Ten days after the winning bid was announced, “Aquamont” filed an appeal on March 28, claiming incorrect fact determination and misapplication of substantive law, articulating seven objections regarding HSV and its subcontractors. The appeal alleged inaccuracies in the work division, ambiguity regarding subcontractor roles, and concerns over the credentials of “Kolubara” and its claimed licenses.

The commission’s report indicated that the case files were submitted on the same day the complaint was registered, without a response issued. On April 4, “Aquamont” announced it would withdraw its appeal, prompting the commission to close the appeal proceedings, denying the return of the appeal fees.

There are now no further obstacles for Rudnik Uglja to finalize a contract on the Ćehotina relocation with HSV, owned by Dusica Djokic. HSV has undertaken various hydro-engineering projects in collaboration with public entities like “Srbija vode” and several municipalities in Serbia. In Montenegro, they previously managed two riverbed regulation projects for the Lim river in Berane and Bijelo Polje, funded by the European Bank for Reconstruction and Development.

Delays Could Jeopardize TE and Energy System

Following “Aquamont’s” appeal, the Coal Mine warned that procrastination in the tender process could delay the Ćehotina relocation and the new mine’s opening, putting coal supply to the Thermal Power Plant at risk, as the existing mine is nearly depleted. The Mine plans to address a significant portion of the river relocation during the Thermal Power Plant’s operational downtime due to reconstruction (from April 1 to November 15) to allow for the new mine’s inauguration next year.

Preparations for relocating the Ćehotina River began in 2019, but delays in documentation have extended over five years due to contentious urban planning and technical regulatory conditions.

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