The Government today provided a guarantee for a loan of the Montenegrin Electricity Transmission System (CGES) from the European Bank for Reconstruction and Development, worth 15 million euros, for the reconstruction of a 220 kilovolt (kV) transmission line.
After the session, the Government announced that the Information on the results of negotiations and conclusion of the loan guarantee agreement necessary for financing the project to increase the throughput capacity of the 220 kV transmission line had been adopted.
As they reminded, at the end of December, the Government adopted the Information on the starting points for negotiations regarding the conclusion of a loan guarantee agreement.
The Trebinje (Bosnia and Herzegovina) – Perućica – Podgorica – Koplik (Albania) transmission line was put into operation successively, namely the Trebinje – Podgorica section in 1965, and the Podgorica – Koplik section in 1972.
"The current condition reflects many years of exploitation, as well as the fact that it passes through areas with demanding climatic conditions. Its throughput capacity no longer meets modern needs, given the significant growth of renewable energy projects, especially solar power plants and the additional hydro potential of the Perućica hydroelectric power plant," the statement said.
The Government said that the reconstruction would include the complete replacement of conductors, protective ropes, insulation, and suspension and connection equipment. The project is of particular importance for the integration of planned and existing capacities from renewable energy sources that are connected to the transmission network, the modernization of which creates conditions for the further development of the green transition in Montenegro.
They added that the implementation of the project also has a broader public interest, which is recognized by the Energy Law, especially in the area of electricity production from renewable sources.
"The construction and maintenance of transmission lines in a functional and reliable condition directly contributes to the safety of the transmission system," it was announced after the Government session.
The deadline for the project's implementation is the end of 2028, and the total budget is estimated at around 15 million euros, for a length of approximately 100 kilometers, from the border with Bosnia and Herzegovina to the border with Albania.
"In this context, the government has signed loan agreements between CGES and the EBRD, as well as a guarantee between Montenegro and the EBRD," the statement concluded.
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