Negotiations regarding the modification of the contract terminated in May by Elektroprivreda (EPCG) with the Swiss company “8B Capital” can only commence once the company fulfills its financial obligations related to the former Steel Plant’s lease, which include overdue rent and employee transfer debts.

This was clarified to “Vijesti” by the Ministry of Energy and Mining, led by Minister Admir Šahmanović. According to a representative from “8B Capital”, Igor Shamiz, a meeting was held with this department’s management, which also included EPCG’s executive director Ivan Bulatović.

“During this meeting, Šamiz presented a request to modify the current lease agreement for the former Steel Mill. He was informed that current circumstances limit any possible intervention. The existing agreement must be honored, irrespective of the business aspirations of any investor. Minister Admir Šahmanović emphasized that settling ‘8B Capital’s’ existing debts and providing proper financial guarantees is essential before any discussions on the continuation or amendment of the current agreement can proceed,” stated the Ministry of Energy.

In May, EPCG terminated its contract with “8B Capital” due to the tenant’s failure to meet obligations related to rent payments and employee transfers.

The energy company previously revealed that they had sent out seven invoices for payment, resulting in a debt of 223,000 euros plus VAT for the lease, combined with a debt of 644,000 euros for the transfer of employees.

EPCG issued a unilateral contract termination notice to Shamiz on May 8, which was not received. Consequently, a second termination notice was sent out, which he obtained on May 26, marking the beginning of a 45-day window within which he must meet his lease and employee obligations. Currently, Shamiz has paid 40,000 euros towards the lease, totaling 100,000 euros, leaving an outstanding balance of approximately 650,000 to 700,000 euros to be settled by mid-July.

“While the Ministry is open to dialogue and genuinely aims to support all projects benefiting Montenegrin industry, the business landscape must be grounded in legal certainty, accountability, and adherence to contractual duties,” the ministry noted.

The tenant was required to pay a monthly rent of 31,000 euros starting October 1. According to EPCG, out of seven rent payments, only two were made. Additionally, as per the agreement, they were supposed to employ 150 workers within six months, but not a single hire was made; salaries for these employees were covered by EPCG, who employed them in solar plant construction and concrete production. EPCG Željezara Nikšić previously stated that salaries for these employees were paid in the last quarter of the previous year and the first quarter of this year.

Last week, during a visit to the solar panels at the Vrtac Dam in Nikšić, EPCG Chairman Milutin Đukanović remarked that Šamiz had approached the Ministry of Energy regarding modifications to the lease agreement for the Forge and Steel Plant, emphasizing that such decisions lie with higher authorities.

“The Swiss company has not fulfilled specific obligations, and there is a designated notice period. Shamiz is currently negotiating with the Ministry of Energy to explore whether the contract can be adjusted. From EPCG’s standpoint, we cannot alter the contract, and we will comply with legal obligations. We are willing to continue our collaboration with Shamiz if certain conditions are met, but this exceeds EPCG’s jurisdiction,” Đukanović stated.

“The future of the lease agreement for the Steel Mill and Forge remains under the jurisdiction of the property owner—EPCG, which has already undertaken certain actions in line with its assessments and competencies. The Ministry will continue to offer support within its capacity, while ensuring adherence to the legal and institutional foundations that define Montenegro’s investment environment,” the Ministry of Energy concluded.

The contract with “8B Capital” was executed in July 2024 for a duration of 50 years, wherein the Swiss firm committed to investing 7.75 million euros within a year of signing and commencing production, and a total of 36.85 million euros in five years, according to the proposal.

“Although the Ministry remains open to dialogue and sincerely wishes to support all initiatives that promote the advancement of Montenegrin industry, business must be conducted on the basis of legal certainty, responsibility, and compliance with contractual commitments,” the Ministry of Energy reiterated.

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