Podgorica, (MINA-BUSINESS) – The Government has issued a guarantee for a loan taken by the Montenegrin Electricity Transmission System (CGES) from the European Bank for Reconstruction and Development (EBRD), worth €15 million, intended for the reconstruction of a 220-kilovolt (kV) transmission line.

Following the Cabinet meeting, the Government announced that it had adopted the communication on the results of negotiations and the conclusion of a guarantee agreement for the loan required to finance the project to increase the transmission capacity of the 220 kV transmission line. 

As recalled, the Government adopted the communication on the basis for negotiations regarding the conclusion of the loan guarantee agreement at the end of December.

The Trebinje (Bosnia and Herzegovina) – Perucica – Podgorica – Koplik (Albania) transmission line was commissioned in stages, with the Trebinje–Podgorica section entering operation in 1965 and the Podgorica–Koplik section in 1972. 

“The current condition reflects decades of operation, as well as the fact that the line passes through areas with challenging climatic conditions. Its transmission capacity no longer meets contemporary needs, given the significant growth of renewable energy projects, particularly solar power plants and the additional hydropower potential of the Perucica Hydropower Plant,” the Government stated in a press release.

The deadline for project implementation is the end of 2028, with the total budget estimated at around €15 million for a line length of approximately 100 kilometres, stretching from the border with Bosnia and Herzegovina to the border with Albania.