Representatives of the Montenegrin Government and the German Development Bank (KfW) signed three contracts in Podgorica today, which envisage the implementation of the second phase of the Energy Efficiency Program in public buildings, the Ministry of Economy announced.
The loan agreement of 20 million euros, as well as the donation agreement of two million euros, were signed by the regional director of the German Development Bank (KfW), Jorg Meilickeda, and the Minister of Finance, Radoje Žugić.
The Minister of Economy, Vladimir Kavarić, signed a Special Agreement on the implementation of the second phase of the Energy Efficiency Program in public buildings with a representative of KfW Bank.
"A special contract between the Montenegrin Government and KfW Bank was signed for the amount of 20 million euros and a financial contribution or donation in the amount of 2,09 million euros," the announcement states.
The contracts were signed in accordance with the Protocol on cooperation between Germany and Montenegro from 2010.
Kavarić said that all obligations arising from the loan agreement are serviced from the savings that will be realized through the implementation of those programs.
"In addition to the fact that this assignment serves energy efficiency, it is also extremely efficient from a financial aspect. These are examples of projects that should be supported as much as possible," said Kavarić.
Žugić assessed that the terms of the loan with KfW Bank are very favorable.
"In addition to the favorable conditions of two percent interest, three years of grace period and 13 years of repayment period, we also have a donation of two million EUR, so these conditions are further improved," announced Žugić.
Meilicke said that the goal of the program is to provide a sustainable supply of electricity under consideration of energy efficiency.
"The Government is taking an excellent step with the energy-efficient renovation of public buildings, and we are glad to be its partners," said Meilicke.
The second phase of the program will include up to 28 educational institutions under the jurisdiction of the Ministry of Education, five facilities under the jurisdiction of the Ministry of Labor and Social Welfare, and six administrative facilities under the jurisdiction of the Property Administration. The program will begin implementation next month with a planned completion date of December 2020.
The Ministry announced that the aim of the program is to contribute to the improvement of energy efficiency in the selected facilities, ensure the sustainability of the facilities and improve the conditions for learning, work and stay of the users of the selected facilities.
The program of energy efficiency in public buildings - phase II represents the continuation of the first phase of the project of the same name, the value of which is EUR 13,94 million, and which includes educational institutions under the jurisdiction of the Ministry of Education.
The first phase of the program included the reconstruction and modernization of a total of 21 educational institutions while respecting the principles of energy efficiency and will be completed by the end of next year, after which the reconstruction of the facilities from phase II will begin.
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