Montenegro’s power utility EPCG has selected Czech engineering group Skoda Praha as the preferred bidder for the construction of a coal-fired unit at its Pljevlja power plant.

CEZ-owned Skoda Praha bid a reported €338.5 million to build the 254 MW unit, beating bids from other firms, including China Machinery Engineering Corp (CMEC).

The existing Pljevlja coal-fired power plant has been in operation since 1982 and is fuelled by lignite. It is Montenegro’s only coal-fired power plant and supplies up to 30 per cent of the country’s electricity needs.

EPCG said that it would enter talks with Skoda Praha to determine and finalise the elements of a final contract.