The Ministry of Energy and Mining has launched a new tender to modernize and adapt oil product storage tanks at the Bar terminal, enabling the storage of mandatory oil reserves as required by a recently adopted law.
The previous tender failed due to no bids, as the initial budget of 1.77 million euros (including VAT) was too low. The new tender increases the budget to 2.12 million euros (including VAT), with bids accepted until June 16.
The selected contractor must submit a detailed work schedule within a week of contract signing and ensure compliance with environmental and safety standards throughout the project. The contractor is responsible for any damages during the work and must properly handle hazardous materials and waste. Penalties apply for delays beyond the agreed deadline, but extensions may be granted for circumstances outside the contractor’s control. Performance guarantees are also required.
The budget increase reflects rising costs of materials and labor since the initial assessment in late 2023. Experts noted that the work requires specialized skills, often necessitating experienced foreign companies, as local firms lack expertise.
Funding for the project is provided through a 7.5 million euro direct grant from the European Commission, aimed at overcoming the energy crisis and supporting mandatory reserve formation and storage upgrades.
The recently passed law mandates a surcharge of three euro cents per liter of fuel to finance the reserves, integrated into fuel prices since February 10. This measure is key to ensuring Montenegro’s energy stability and protection against supply disruptions caused by geopolitical or market crises.
The reserves system aligns with EU practices, where member states maintain strategic oil stocks to stabilize markets. While requiring upfront investment, strategic reserves offer long-term benefits by enabling rapid crisis response and protecting citizens’ economic interests.
Importers of oil products will collect the surcharge, which, alongside EU funding, finances the reserves. According to the law, 85% of reserves will be diesel fuel, with the remainder unleaded gasoline. The Hydrocarbon Directorate will form at least half the reserves, with importers covering the rest. The Ministry expects the total reserves to be secured by 2028, the deadline until which the surcharge will be collected.
The formation of oil reserves is also necessary for Montenegro to close EU accession chapter 15 on energy. Experts note that the process should have started as early as 2013 to avoid high costs.
