Montenegro: The state is credit worthy endorser for a loan worth 60 million for the construction of an undersea cable

6. May 2014. / SEE Energy News

Finance Minister Radoje Zugic and Head of the European Bank for Reconstruction and Development (EBRD) Montenegro Giulio Moreno signed a Contract of guarantee for a loan worth 60 million euros, which will be intended to the project of construction of an undersea power cable.

Finance Minister Radoje Zugic and Head of the European Bank for Reconstruction and Development (EBRD) Montenegro Giulio Moreno signed a Contract of guarantee for a loan worth 60 million euros, which will be intended to the project of construction of an undersea power cable between Montenegro and Italy. The borrower is a state owned company Montenegrin Transmission System Operator (CGES), toward which the money will be approved in three installments of 20 million.

“The state acts in the role of guarantor of the loan which is to be approved to CGES for a very important project,”  after signing the contract, Zugic said.

“ The Government hereby acknowledges announcement that the guarantees will being issued strictly for development projects, or those projects that bear minimal risk of falling  in burden of the budget. The construction of undersea cable is an important project which is the focus of the Government. By these actions we express and strong partnership with the EBRD, “ said Minister Zugic.

Moreno said that the project of construction of undersea cable was one of the most important in the region, and  the conclusion of the guarantee was not reached easily.

“The project is worth around one billion euros and many parties are involved in its implementation – Terna as the main financier, CGES, co-financiers the EBRD and the German Development Bank (KfW) as well. We hope this day will be repeated in the next two years because the participation of the EBRD is projected at 60 million euros, and this is the first installment ,” Moreno specified.

Source; Serbia Energy See Desk

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