The second tender by the Ministry of Energy and Mining for the adaptation and modernization of petroleum product storage tanks at the Bar terminal, owned by state-owned Montenegrobonus and intended for storing mandatory oil reserves, has also failed.
The first tender failed because no bids were submitted due to the low price. According to the decision to cancel the second tender, it failed due to a tax debt of 2.22 euros owed by one of the members of the S.A.K.Z – Tibox-Oliver consortium.
The second tender, whose value was increased from the initial 1.77 million to 2.22 million euros, received a bid from the company Spring Tech from Belgrade. However, this bid was also deemed invalid because the required bank guarantee was not submitted.
Regarding tax obligations, the cancellation decision, signed by Minister Admir Šahmanović, states that the Tax Administration was asked to verify whether the bidders had settled all obligations for salaries, profit, and VAT. It was determined that the consortium members Ivkon and MM Sistem from Nikšić, Denikoo and Lars Fire from Podgorica, and the Croatian companies S.A.K.Z. and Tibox-Inženjering had no debts, while the Budva-based company Oliver-ing owed 2.22 euros in taxes and contributions on wages.
Although the consortium submitted a certificate in early August confirming the debt had been settled after the submission deadline, the procurement committee did not consider it, since verification of tax obligations had already been conducted officially.
The decision explains that, according to Article 140, paragraph 1, point 4 of the Public Procurement Law, the procuring authority is obliged to cancel a procedure if no valid bids are submitted or if bidders are excluded. Since all submitted bids were either invalid or excluded, the committee recommended the cancellation of the tender.
Bidders have the right to appeal this decision to the Commission for the Protection of Rights in Public Procurement Procedures.
According to the tender documentation, the selected contractor was required to submit a detailed work schedule with complete technical data and workforce requirements within a week of signing the contract. The project was to be completed within nine months.
Before starting the works, responsible personnel, including the site supervising engineer and the safety representative, were to brief the site manager on environmental protection requirements. The contractor is responsible for overseeing compliance from the start of the project until handover and bears full responsibility for any ecological or technological damage during execution. The contractor must manage chemicals, hazardous materials, and waste according to legal regulations and maintain appropriate records.
The tender stipulates that if the contractor fails to complete the works on time without the fault of the procuring authority, a daily penalty of 0.1 percent of the contract value will be applied for each day of delay, with a maximum of 10 percent of the contract value. The contractor may request an extension if delays are caused by circumstances beyond their control. The selected contractor must also provide performance and defect rectification guarantees equal to 10 percent of the contract value.
The Ministry of Energy and Mining, in a government-approved report after the first tender failed, stated that the cost increase from the original estimate was due to potential bidders expressing reservations about the initial budget because of rising prices of certain works and materials since the financial assessment in the third quarter of 2023. The procurement committee, consisting of construction and adaptation experts, recommended a 20 percent increase. The ministry noted that these are specialized works for which Montenegrin companies lack expertise, making it necessary to engage foreign companies with experience in this area.
Funding for the project is provided through direct budget support from the European Commission to address the energy crisis, including 7.5 million euros allocated for the formation of mandatory reserves and warehouse adaptation.
Under the Law on the Security of Petroleum Supply, a fee of three cents for reserve formation has been incorporated into fuel prices since February 10. The establishment of mandatory oil reserves is considered crucial for Montenegro’s energy stability and protection against potential global supply crises. This measure allows the country to mitigate the impact of sudden disruptions, whether due to geopolitical crises, natural disasters, or market instability.
The Ministry has emphasized that creating reserves aligns with EU practices, where member states are required to maintain strategic oil stocks to ensure market stability. Although forming strategic reserves requires financial investment, it is seen as a long-term benefit, enabling rapid response in crises and protecting citizens’ economic interests. Fuel importers will collect the fee, which, together with European Commission support, funds the reserves.
Drasko Striković, Secretary General of the Association of Oil Companies, noted that forming oil reserves is necessary for closing EU accession Chapter 15 on energy. He added that Montenegro should have started this process in 2013, which would have made the costs negligible.
The law stipulates that 85 percent of the reserves will consist of Eurodiesel and the remaining of unleaded gasoline. At least half of the total reserves will be formed by the Hydrocarbons Administration, with the remainder by petroleum importers. The Ministry expects the total oil reserve quantities to be secured by 2028, during which citizens will continue to pay the three-cent fee.
