Construction of 400 KW strong transmission line on the relation Pljevlje-Tivat, 85 million EUR worth will be financed by EBRD and KFW. EBRD will give 60 million EUR and KFW will give 25 million EUR. Interests for credit for the biggest project realized by public company are very affordable so KWH bank’s interests are 2,4% on annual level, while EBRD’s interests are 1% plus Euribor. State will issue guaranties for this credit.
Transmission line Tivat-Pljevlja is a part of big underwater cable which will connect Montenegro and Italy. Construction of this cable will enforce internal and regional transmission lines as preconditions for establishing regional electricity market. Except for that, construction of transmission line will be positive signal for investments in renewable energy sources like HPPs on Moraca, Komarnica and Berane, small HPPs and windmills for electricity production.
KWF’s credit: Total amount of assets, that will be determined for this project by KFW bank, will be 25 million EUR. The contract predicts credit to be returned in the nine years’ period. Credit assets will be returned in 18 equal or almost equal semiannual rates starting with December 2016. Credit has fixed interest rate 0,25% high on annual basis and contribution for credit procession will be 1% of total credit amount.
EBRD’s credit: Total amount of assets, determined for this project by EBRD, will amount 60 million EUR. Credit assets are divided into 12 tranches in the lowest amount of 5 million EUR and they will be decreased every year in the amount defined by annual budget law in accordance with needs required by project realization. The contract predicts credit to be returned in the 12 years’ period in equal or almost equal semiannual rates. The first rate of credit payment will be paid in September 2016 and the last one in September 2028. Compensation for engaged and not used assets will amount 0,5% yearly. Compensation for credit procession will amount 1% of total credit value.
Draft of both contracts predicts issuance of guaranty from state for mentioned credit arrangements. According to that, Montenegro will guarantee soon and neat achievements of obligations of borrower. Mentioned guaranties are predicting that guaranty as primary borrower guarantees payment for any of these amounts in time and exact accomplishments of other borrower’s obligations like it was defined by credit contracts.
Source; Serbia Energy See desk/MNE gov/EPCG
