Montenegro opens new tender for steel mill EPCG Zeljezara lease | Montenegro Investments News
EPCG is offering a 15 to 50 year lease of the production facilities of EPCG Zeljezara Niksic, it said in the tender invitation.
Bidders should offer to pay a monthly fee of 30,000 euro ($32,500) to 150,000 euro euro. They should also present a five-year business plan for investment in existing production facilities, machinery, and auxiliary equipment, as well as a plan to expand the production capacities. In addition, they should hire between 100 and 150 workers in the first six months after signing the lease contract.
Bidders needs to make a first demand guarantee of 30,000 euro valid for sixty days, or pay a 30,000 euro deposit.
The bidding deadline expires on July 24.
Swiss-registered company 8B Capital, owned by Russian businessman Igor Shamis, was the sole qualified bidder in the two tenders for leasing EPCG Zeljezara’s production assets held earlier this year. However, EPCG turned down the bids because the company failed to provide bank guarantees and pay the required deposit. Furthermore, in the tender called in April it sought a lease of 50 years, considerably longer than the previously proposed term of up to ten years.
Located in the western city of Niksic, EPCG Zeljezara has two 60-tonne electric arc furnaces that can produce an estimated 300,000 metric tonnes of crude steel per year.
