The European Bank for Reconstruction and Development (EBRD) has announced a loan of EUR60m to support the Lastva-Pljevlja transmission line project in Montenegro.
The electricity transmission system operator of Montenengro, Crnogorski Elektroprenosni Sistem (CGES), has undertaken the project to improve the country’s power network and create electricity transmission infrastructure between Montenegro and Italy.
The loan will be used to finance a new transmission line, a substation, and strengthen the existing high voltage network near the Adriatic Coast.
EBRD’s fund will be used to create transmission capacity required for the undersea interconnection between Italy and Montenegro and include building a new 400/100/35kV substation at Lastva on the Adriatic coast.
It also includes strengthening existing network around Lastva into the substation and constructing a new 155km long 400kV transmission line from Lastva to Pljevlja in North Montenegro.
Total costs for the project are estimated to be over EUR100m of which Germany’s KfW will contribute EUR25m, while the remaining amount will be financed from CGES’ own funds.
Construction is expected to begin in 2014.