Representatives of Elektroprivreda (EPCG) and the German Development Bank (KfW) signed a loan agreement worth 40 million euros today to finance the installation of the A8 unit in the Perućica Hydroelectric Power Plant, as part of the third phase of the reconstruction and extension project of that hydropower facility.
The loan is provided by a new instrument that is the result of the cooperation between the European Commission and KfW, the EFSD + guarantee (European Fund for Sustainable Development Plus), which is new even for regional conditions.
The loan repayment term is 15 years, with a grace period of five years included.
"The installation of an additional, eighth unit in HPP Perućica is only one of the activities in the process of greening the production portfolio of EPCG, i.e. decarbonization of the Montenegrin power sector. In this way, EPCG makes a full contribution to the decarbonization process, which includes the construction of carbon-neutral energy sources, compliance with modern standards in the field of environmental protection and improvement of competitiveness, which is the aspiration of every responsible company", the announcement states.
The executive director of EPCG, Ivan Bulatović, expressed his satisfaction with the fact that the very fruitful cooperation with KfW has continued.
"We are glad that, by signing this contract, we have made a serious contribution to the development of this plant. It is a very favorable arrangement, and it is the first one that was not issued with a state guarantee, but with an EFSD+ guarantee, which speaks volumes about the fact that the international factor perceives us as a credible partner. This story is also important in a broader sense, because it confirms our efforts to act in the direction of decarbonization", said Bulatović.
The head of the Directorate for Development and Investments in EPCG, Ivan Mrvaljević, said that the very fact that we are talking about phase three is a confirmation of the continuation of the successful cooperation between EPCG and KfW, which has been going on for 24 years.
"It is about an idea that is very old and long and it is precisely at this moment and in these new energy circumstances that we are attending this signing today and that we are finally talking about the unit A8 HPP Perućica", said Mrvaljević.
The director of KfW for Southeast Europe and Turkey, Pablo Obrador, said that the signing of the contract confirms that the cooperation between EPCG and KfW in the past two decades has been very successful.
"This is the last of the three loans provided by KfW for the modernization of Perućica, and the investments as part of the joint arrangements for this facility, including this contract, exceed EUR 83 million, which indicates a serious level of cooperation, especially if you take into account the progress in EFSD+ guarantee," emphasized Obrador.
The Minister of Energy, Saša Mujović, said that there is no success in energy without vision and strategy.
"Energy does not tolerate improvisation, and power plants like Perućica and Piva could only be built by a strong state with clear development goals. Our generation has the honor to continue on the path of its predecessors, to modernize and improve their work. The modernization of Perućica is particularly important in the context of the need for a stable source of energy, and the full significance of this project will come to light after the water of the Zeta River is channeled into reservoirs," said Mujović.
The existing supply system, machine hall and 110 kV distribution plant can support the final phase of the construction of HPP Perućica, which envisages the installation of the eighth aggregate with an installed power of 58,5 megawatts (MW).
This will increase the nominal power of our oldest large power plant from 307 to 365,5 MW.
It is planned that the future aggregate A8, together with aggregates A6 and A7, will be connected to the third pipeline under pressure.
In addition to financial support, in the form of loans, EPCG will also have technical support in activities important for its transformation into a green market-oriented company.
The international tender for the selection of contractors for the fabrication, delivery, assembly and commissioning of the A8 unit will be published in October this year. Commissioning of the eighth unit is planned for 2027.
In April, EPCG signed a contract on connection to the transmission system with the Montenegrin Electric Transmission System (CGES).
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