Montenegro power utility EPCG has terminated a deal with Skoda Praha for the construction of a new coal-fired power plant.

According to a report from Reuters, Skoda Praha has failed to secure funding for the 254 MW Pljevlja II power plant in Montenegro, forcing EPCG to cancel a contract signed in 2016.

CEZ-owned Skoda Praha was unable to secure financing from the state-owned Czech Export Bank (CEB) and the Czech state export credit insurance provider EGAP last year and had sought alternative funding, Reuters reported.

Skoda Praha bid $379 million to construct the 254 MW unit, which was granted consent in early 2017. The plant was designed as an extension to the existing 225 MW lignite-fired Pljevlja plant.