The Government of Montenegro signed a guarantee agreement on high-voltage cable with EBRD

EnergyProjectsSouth-East European INDUSTRIAL Мarket - issue 2/2014

The Montenegrin Ministry of Finance and the European Bank for Reconstruction and Development (EBRD) have signed a Guarantee Agreement worth 20 million euro, the Government of Montenegro officially announced. According to the document EBRD will grant Montenegrin Electrical Transmission System a loan, which will be used for the construction and installation of 150 kilometers long high-voltage cable (400KW) between municipalities Tivat and Pljevlja.

The funds will also provide for the construction of the power station in Lastva Grbljanska and reconstruction of the power station in Pljevlja municipality. These steps precede a larger project which includes the construction of underwater power cable between Montenegro and Italy. The implementation of all these activities is aimed at providing better readiness of the local electro-systems in case of major damages.

"Regarding development component of this project, the Government of Montenegro is willing to issue state guarantees solely for this kind of capital projects which will contribute to the dynamics of economic activities", Minister Zugic pointed out.