Deal worth 720m EUR - Milo Đukanović and Silvio Berlusconi talk about construction of underwater cable between Tivat and Pescara

Montenegrin Prime Minister Milo Đukanović and his Italian counterpart Silvio Berlusconi should announce on Saturday (February 6, 2010) in Rome the commencement of construction of underwater cable between Tivat and Pescara, worth 720m EUR - portal Analitika announced yesterday. People in Montenegrin Government claim that the project for construction of underwater cable between Italy and Montenegro is the "business of the decade".

According to the announcements, Montenegro will become a significant European energy hub and the headquarters of the auction company for sale of electric energy. Realization of the project can make Italy the most important economic partner of Montenegro - Analitika points out.

The portal says that construction of the interconnective cable of two-way current, with the capacity of 1,000 MW, should be finished prior to 2013. It is pointed out that, according to the preliminary agreement, the cable should be laid between Tivat and Pescara, and it will be built by Italian company Terna in association with Montenegrin Prenos. Terna and Prenos will also finance construction of long-distance power line towards Serbia and Bosnia and Herzegovina in order to form an energy ring around Montenegro and, thus, completely stabilize Montenegrin network.