Statkraft and Elektroprivreda Crne Gore to cooperate within business development in the Montenegrin hydropower industry

28.03.2006 08.00 | pressrelease

(Oslo, 28 March 2006) Statkraft and the Montenegrin Company Elektroprivreda Crne Gore (EPCG) signed a memorandum of understanding on March 24th with respect to further cooperation in the Montenegrin hydropower sector. The agreement, signed by Bård Mikkelsen, CEO and President of Statkraft and Srdjan Kovacevic, CEO of EPCG, confirms the parties' intention to identify joint opportunities for cooperation in the area of hydropower generation in Montenegro.

The Montenegrin Investment Promotion Agency (MIPA) will coordinate and assist EPCG and Statkraft in the preparation and execution of a joint study.

"This agreement in principle is an important signal of our interest in the Montenegrin market. Both Statkraft and EPCG are leading players in the fields of hydropower in their respective markets, and now our two companies will work together to explore mutual business opportunities," says Bård Mikkelsen.

"The signing of the agreement is very positive not only for EPCG but also for the whole Montenegrin power industry. It demonstrates that there is a large potential for increased hydropower generation in the Montenegrin energy sector," says Srdjan Kovacevic.

"I am glad that the Norwegian investor community is growing in Montenegro. This agreement shows that there is substantial interest in the energy sector and is a major step forward for business investment in Montenegro." says Petar Ivanovic, CEO of MIPA.

Statkraft's vision is to be a European leader in environment-friendly energy. Based on more than 100 years of knowledge and investments, the Statkraft Group is well equipped for further growth and development - and has a clearly stated goal to create lasting value. Statkraft stands for sustainable development from both an environmental and a financial perspective. The group produces a total of 42 TWh per year, making it the third-largest producer of electricity in the Nordic region and the second-largest producer of renewable energy in Europe. The group has approximately 2,000 employees including the subsidiaries Skagerak Energi and Trondheim Energiverk. Statkraft also has shareholdings in the Norwegian power companies BKK, Agder Energi and Fjordkraft, as well as in the Swedish company E.On Sweden.

Elektroprivreda Crne Gore (EPCG) is a Montenegrin majority state owned company with main business activities within electricity production, transmission and distribution. EPCG has responsibility for the electricity system in Montenegro, including the export and import of electricity.

The Montenegrin Investment Promotion Agency, (MIPA), is a national investment agency set up by the Government of Montenegro to promote foreign investments and to foster economic development in Montenegro.