An agreement on the construction of Trans-Balkan energy corridor through Montenegro has been signed. It is 25 million euros worth, financed by the European Union and implemented by the German Development Bank (KfW).
The agreement was signed by Montenegrin Minister of Economy Vladimir Kavaric, Board member of KfW Bank Roland Siller and CEO of Montenegrin electricity transmission system operator CGES Ivan Bulatovic.
Minister Kavaric said that the project involves strengthening the Montenegrin energy infrastructure related to submarine cable to Italy and the construction of transmission lines between Montenegro and Serbia. He also reminded that this project has an enormous importance for energy sector and Montenegrin economy in whole.
The connection with Italy via undersea cable is a priority for Montenegro by itself. It places Montenegro in the center of the energy flows in the region and completely changes the position of all neighboring countries by giving them the ability to connect with electricity systems of Western Europe via Montenegro. But, the undersea cable project will reach its full capacity only through the realization of Trans-Balkan energy corridor, Minister Kavaric concluded.
Trans-Balkan energy corridor should enable the transmission of electricity over long distances with a minimum loss of energy. Its length is over 150 kilometers and it is estimated that the project would cost about 150 million euros. The construction of Trans-Balkan energy corridor is also supported by the Government of Serbia and it is included in IPA 2015 donation program, transmits Serbia-energy.eu