The Montenegrin Electricity Distribution System (CEDIS) today signed an Agreement with the European Bank for Reconstruction and Development on the implementation of Phase III of the Electricity Consumption Metering Modernisation Project.
The €32 million Agreement was signed by Zoran Đukanović, CEDIS Executive Director, and Vasilije Jauković on behalf of the EBRD, while Elektroprivreda Crne Gore, as the owner of CEDIS, provided guarantees for the Project. The funds from this loan will be used to procure 60,000 new multifunctional meters, as well as to reconstruct metering points, install new cabinets and bring the associated network up to a condition that can support modern technology for the remote measurement of electricity consumption. The total value of Phase III of the Project is €39 million, of which CEDIS will provide €7 million from its own funds.
This investment will make Montenegro, an EU candidate country, the first country in which the EBRD operates to meet EU targets for the coverage of modern meters, with a minimum of 80 per cent of customers. The project is expected to reduce CO2 emissions by more than 86,000 tonnes per year.
This is the EBRD’s first syndicated loan in Montenegro. Syndicated loans enable commercial banks to participate in the Bank’s projects and expand the scope of financing to support sustainable growth.
Harry Boyd-Carpenter, EBRD Director for Energy, said: “Montenegro’s electricity sector is already one of the most modern in Europe. It is no coincidence that Montenegro has the highest per capita level of EBRD financing of all our regions. This project builds on our previous loans to EPCG, our support for Montenegro’s interconnection with Italy and the first wind farm project. We are delighted to be working again with EPCG and CEDIS, which have achieved an outstanding transformation of Montenegro’s electricity distribution network, reducing losses and improving the quality of supply for all consumers.”
Zoran Đukanović, CEDIS Executive Director, said: “In addition to placing Montenegro among the leading countries in the transition to smart grids, the completion of this electricity metering project will also bring added value through significant investment in the reconstruction of the low-voltage distribution network, with the aim of substantially improving the quality of services for all users. I would like to remind you that, with the implementation of Phase III of the Project, more than 300,000 consumers in Montenegro will be part of the remote reading and consumption management system, which is almost 85 per cent of the total number. In this way, we will fulfil the obligations arising from the Energy Law to have 85 per cent of consumers in the remote reading system by 1 January 2019.”
To date, the EBRD has invested nearly €540 million in various sectors of the Montenegrin economy, with investments in the energy sector accounting for almost half of its current portfolio.
