A loan agreement for 28 million euros has been signed between CGES and the European Bank for Reconstruction and Development (EBRD).

On 19 July 2024, a Loan Agreement was concluded at the Ministry of Finance between the Montenegrin Transmission System Company AD (CGES) and the European Bank for Reconstruction and Development (EBRD), with the guarantee of the Government of Montenegro, for the purpose of financing the project for the construction of the 400/110 kV line. "Brezna" TS , in the amount of 28 million euros. The loan agreement was signed by Ivan Asanović, Executive Director of CGES and Remon Zakaria, Head of the EBRD's office for Montenegro, while on behalf of the Government of Montenegro, the Minister of Finance Novica Vuković signed the agreement ..

This project will enable the integration of 400 MW of renewable energy into the national grid, supporting the decarbonisation of the Montenegrin economy. Transmission losses will be reduced by 13 GWh per year, and reliable electricity supply in Montenegro and the region will be ensured.

The project includes the installation of two transformers and their connection to the national grid via the new overhead line Lastva – Pljevlja, which will increase the capacity of the plant to 400/110 kV.upgraded to 400/110 kV.

The European Union (EU) provided technical assistance of 1.05 million euros for the development of a feasibility study and environmental and social impact assessment.

Strengthening the Trans-Balkan Corridor will connect the countries of the region with Italy and the EU, creating equal conditions on the electricity market for renewable energy sources in Montenegro!

The construction of the mentioned substation is planned until the end of 2028, and the value of the mentioned project is estimated at around 36 million euros, of which 28 million euros are provided by the concluded agreement.

After the signing, it was jointly stated that the project to improve the substation Brezna in the northwest of Montenegro represents a key step towards the future of Montenegro based on sustainable development and energy security.

The signing of the contract was attended by Dragan Perunović,Director of the Sector for Development and Investments, Rade Marković, head of the legal service and Zvjezdan Vujović, Acting Director of the Directorate for Electricity at the Ministry of Energy and Mining.