Two bids have been submitted to the tender launched by the Ministry of Energy and Mining (MER) for the adaptation of oil storage tanks at the Port of Bar, intended for holding Montenegro’s mandatory oil reserves, the ministry headed by Admir Šahmanović confirmed for Pobjeda.
The ministry did not disclose the names of the bidders or the value of their offers, but stated that the tender commission is currently evaluating the submissions, with a decision on the most favorable bidder expected in the coming weeks.
Although work on adapting the storage tanks was supposed to have already begun—given that the first tender was announced late last year—the process has been delayed due to two unsuccessful tender rounds.
Tender history
The first tender failed because the allocated budget was found to be insufficient, while the second failed due to irregularities in the submitted bids. As previously stated by MER, alternative storage capacity will be secured either in Montenegro or abroad to ensure compliance with oil reserve obligations.
The initial tender, valued at €1.77 million for a nine-month adaptation period, did not attract any bidders. According to a MER report later adopted by the Government, potential bidders expressed concern that the estimated value was too low due to increased costs of certain works and materials since the financial assessment conducted in the third quarter of 2023. As a result, experts on the tender commission determined that the budget should be increased by 20 percent.
The ministry also noted that the project involves highly specialized works for which Montenegrin companies lack the necessary expertise, making it essential to engage foreign firms experienced in such operations.
A second tender, with an increased value of €2.22 million, received two offers. However, both were rejected as invalid: Spring Tech from Belgrade failed to provide a required bank guarantee, while one member of the S.A.K.Z.–Tibox–Oliver consortium, the company Oliver-ing from Budva, was found to have outstanding tax liabilities of €2.22. Although the consortium later submitted proof that the debt had been settled, this was provided only after the bid submission deadline had passed, so the tender commission could not take it into consideration.
EU funding support
The project is financed through direct budgetary support from the European Commission aimed at addressing the energy crisis, which allocates €7.5 million for the formation of mandatory oil reserves and the adaptation of storage facilities.
The Hydrocarbon Administration is expected to secure the first quantities of oil reserves by the end of the year. According to MER, additional storage capacity will still need to be leased—either domestically or abroad—to meet the country’s full legal obligations for oil reserves.
Fuel importers were required to secure their portion of the reserves by the end of September, and together with the quantities procured by the Hydrocarbon Administration, nearly two-thirds of the total legally required reserves should be met.
The Law on Security of Supply of Petroleum Products introduced a three-cent fee for reserve formation, which has been included in the fuel price since 10 February. This fee is collected by fuel importers and, together with EU funding, represents a key financing mechanism for building the reserves.
The law stipulates that 85 percent of the reserves must consist of diesel, with the remainder being unleaded gasoline. At least half of the reserves will be provided by the Hydrocarbon Administration, while the rest will be secured by fuel importers. The ministry expects that the full volume of mandatory oil reserves will be established by 2028, until when citizens will continue paying the three-cent fee. By mid-September, nearly €8.5 million had been collected through this mechanism, with the total expected to reach €11 million by year-end.
