Electricity Company of Montenegro (EPCG) has sent a notice of unilateral termination of the lease agreement for the Željezara plant to 8B Capital, confirmed Miro Vračar, Executive Director of FC Production, to “Dan.”
The notice of contract termination was sent yesterday following three written notifications regarding unpaid rent, which were sent in January, March, and April. As a result of the termination notice, 8B Kapital, owned by Igor Šamiz, is no longer the tenant of the Željezara plants – Čeličana and Kovačnica.
“Since the contract was concluded on September 25, 2024, the tenant was obliged to pay a rent of €31,000. They have only paid two rents, which is all they have paid. There were seven rents due, totaling €223,000 excluding VAT, and after deducting the two they paid, they owe €162,000 as of May 1st. We have sent them three written notices regarding non-fulfillment of obligations under the signed contract. Article 8 of the agreement, and parts of Articles 80.1 and 80.2, give us the right to unilaterally terminate the agreement if the tenant fails to fulfill obligations, including paying rent and taking over the workers from the Željezara. Therefore, all conditions for the termination of the contract were fully met,” Vračar told “Dan” and added that they sent the notice of unilateral termination yesterday.
He emphasized that the tenant could go to court over the termination, but he doubts they could achieve any rights on that basis since EPCG has the right to terminate the contract unilaterally.
Vračar also noted that the termination of the contract would eliminate the possibility of utilizing the Željezara assets, specifically steel production and processing.
“We tried to valorize the assets, but the partner behaved irresponsibly. They didn’t meet even minor obligations at the start of the project. We tried to introduce an investor to produce and process steel because EPCG cannot handle this business, and we received a clear opinion from the Competition Protection Agency. We will try to find a model to activate these assets and bring in an investor who will be involved in steel production,” Vračar said.
“Dan” also received unofficial information that Šamiz complained about the state of the assets and equipment he leased. Vračar insists that the assets were handed over in the condition they were found and that a list of the assets taken over was provided to him.
“He saw everything, visited the site, and agreed to purchase, so nothing has changed regarding the assets since the contract was signed,” Vračar said firmly.
According to Vračar, Čeličana and Kovačnica need an investor who will invest and then produce steel.
“We handed over the equipment as we found it from the former Turkish owners. The furnace was in good condition, while other facilities certainly require repairs,” Vračar added.
The lease agreement for the Željezara plant with Igor Šamiz was signed last year in the presence of former Minister of Energy Saša Mujović and high-ranking officials from EPCG.
No workers were taken over
Vračar emphasized that 8B Capital has not taken over any workers from Željezara since becoming the tenant, despite being obligated under the contract to take over 150 workers.
“Yes, they wrote some letters about taking over, about the profiles of workers, but they have not taken any workers under any circumstances. All workers have been paid by EPCG and were engaged in the construction of solar power plants and concrete blocks. We have been a correct lessor, and if anything needed to be investigated, we did so. However, officially, they have not taken any workers, nor have they fulfilled any obligations regarding the takeover, although they were obligated to take over 150 workers from Željezara,” Vračar said.
He assured the employees of Željezara that their jobs would not be in danger and that they could continue earning wages through the construction of solar power plants.
