EU and EBRD agreement worth 2,5 million euros - assistance to Montenegro in energy, investment climate and management

The European Union and the European Bank for Reconstruction and Development (EBRD) signed, as part of the Reform Instrument, an agreement worth 2,5 million euros to help Montenegro in energy security, investment climate and management of state-owned companies.

"The EBRD will support the improvement of the regulatory framework that promotes renewable energy and the integration of Montenegrin into the European and regional electricity markets. This is crucial for the green transition and the integration of Montenegro into the EU. The EBRD will also promote greater efficiency and good governance in state-owned enterprises," he says. in the press release delivered to the media by the European House.

The EU Ambassador to Montenegro, Oana Kristina Popa, once again confirmed, as reported, her strong support for Montenegro's accession to the EU, and the firm commitment of the EU to help Montenegro implement the remaining reforms.

"Reforms are essential for unlocking Montenegro's potential for growth, for which energy security and green transition are extremely important. We hope that with the reforms from the Growth Plan, we will give a strong boost to the Montenegrin economy, which will ultimately contribute to a better standard of living for citizens," said Popa.

Head of the EBRD Office for Montenegro, Remon Zakarija, said that the EBRD is happy to enter into a partnership with the EU in order to support Montenegro in the improvement and implementation of key reforms in the energy sector and corporate management of state-owned enterprises.

"This instrument is designed to help Montenegro achieve these goals, enabling sustainable policies and economic reforms that will be the driving force of long-term prosperity and European integration. We believe that Montenegro will make significant strides in the reform of the energy sector, creating a more robust and attractive environment for investors," said Zakarija.

The Minister of Energy and Mining, Saša Mujović, emphasized that his ministry cooperates very well with the EU Delegation, which closely monitors and supports the implementation of the energy transition in Montenegro.

"One of the examples of this is the financial and technical support that they provide us continuously, through various programs, in order to implement the reforms in a high-quality manner and in accordance with the stipulated deadlines, which will ultimately have a positive effect on the fulfillment of the final benchmarks from Chapter 15. As the signatory of this agreement, the European Bank for Reconstruction and Development has once again proven to be our reliable partner when it comes to key energy projects semi-annual preparation in which joint teams of consultants and representatives of the Ministry of Energy and Mining will participate. In addition to the auctions, through this program, the EBRD will provide experts for the needs of connecting the electricity market, and we believe that their contribution will be of great help for the preparation of all the regulations that will be in accordance with the standards of the European Union," said Mujović.

Minister of European Affairs Maida Gorčević emphasized the importance of the EU Reform Instrument, designed to support the implementation of key reforms related to the process of joining the Union. Apart from the needs of reforms from the Growth Plan, the expertise of colleagues from the EBRD will be invaluable in the context of the accelerated process of accession negotiations.

"I am sure that the part of the negotiation structure that deals with Chapter 15 (Energy) will benefit significantly from this additional support, the aim of which is to ensure compliance of our energy policy and standards with those of the EU member states," Gorčević emphasized.

The announcement reminds that Montenegro and the EU started implementing the Reform Instrument in 2023 with an initial grant of 10 million euros from the EU budget. "The goal of the Reform Instrument is to provide technical expertise and transfer knowledge to Montenegro for important structural reforms of its economy. The Reform Instrument also provides a platform for the joint and coordinated work of Montenegro and key international partners to unlock the potential for growth. In addition to the EBRD, other partners are for now the World Bank and the UN family," it concludes.