Montenegro: EBRD loan for power grid upgrade connection for Italian underwater power cable

21. August 2015. / SEE Energy News

EBRD submitted guarantees draft to the Montenegrin Ministry of Finance and its issuance and approval of the remaining funds will close the finances construction of 85 million, according to the proposal of KfW and EBRD, which will be used to build the substation in Lastva Grbaljska, setting of 150 kilometers long transmission line between Lastva and Pljevlja, as well as the reconstruction of the substation in Pljevlja – according to information, with reminder that the Law on the budget for this year includes the issuance of this guarantee.

The loan agreement between EBRD and CGES was signed in May 2013th.

– Replacing the cable will be closed circuit of the power supply in the Montenegrin transmission network (Lastva – Pljevlja – Ribarevine – Podgorica), by which whole network will be more reliable and stronger. The construction of the substation in Lastva will solve the interference that transmission system has on the coast, especially in the summer season. Planned additional line will be a key strengthening for power transmission grid that is necessary to use the full capacity of an underwater interconnection between Italy and Montenegro – it was assessed at a session.

According to media reports, the contract stipulated that the loan should be return for 12 years in equal semi-annual installments. The first installment will be in September 2016th. Fee for involved and unused funds will amount to 0.5 percent per annum, and the standard interest rate of the EBRD amounts to six-month Euribor + 1 percent.

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