The Montenegrin electricity transmission system celebrated seven years of independent operation today. Seven years of full commitment to development goals, maximum engagement from all employees, a period of knowledge and effort invested, visible results, major investments, and wonderful achievements. A period of significantly visible financial indicators.
Zvanicama se kao domaćin obratio the Chairman of the Board of Directors, Mr Dragan Laketić, who on that occasion said: " And on this first of July, which we have been marking for the seventh consecutive year as the day of the Montenegrin Transmission System, alongside gratitude I also feel the satisfaction of being able to share with you my conviction that we have behind us another successful business year in which, despite many challenges, we have maintained the growth trend in some key business segments. Our corporate data shows that at the end of 2015, the value of CGES's fixed assets reached €175 million, which is €9 million more than the previous year and €40 million more than in 2009. For the seventh consecutive year, CGES has achieved a positive business result, posting a net profit of €4 million, while the total net profit for these seven years has reached €35 million. I would particularly like to highlight that, thanks to our sustained growth, we have stabilised our annual investment spend at between €15 million and €20 million, up from a previous range of €3 million to €6 million. In addition to the significant activities on our main project, the undersea interconnector to Italy, our annual investment realisation rate for the internal network has exceeded 90% of the planned investment in recent years, which we are particularly proud of. The effect of the investment spending can also be seen, among other things, in the permanent reduction of the total unsupplied electricity from the transmission network to consumers in Montenegro, which in 2015 was estimated at less than 0.02% of the total energy transmitted. Regarding operational efficiency, it should be noted that the value of assets per employee is increasing year on year.
To achieve our mission and ensure a modern and reliable transmission system with sufficient capacity and seamless access for all users, we must continue with activities to connect and strengthen the transmission network, both internally and with our surroundings. Only in this way will we be able to meet the challenges posed by the future, which are, first and foremost, the integration of new sources and the creation of all the technical conditions for the smooth functioning of the electricity market. I would highlight a few investment projects that illustrate the commitment to developing the transmission network evenly across all regions of Montenegro:
We have carried out the reconstruction and expansion of the Mojkovac substation by installing another 20 MVA transformer, thereby ensuring a 100% power reserve and significantly improving the security of supply from the transmission network to the consumption area of Mojkovac and Kolašin.
In Nikšić, work is underway to lay a 110 kV cable which will connect the already completed Kličevo substation to the transmission network. The commissioning of these facilities is planned for the end of September this year.
In the next ten days, we expect to complete the construction of the 110 kV Tivat-Kotor transmission line, which will bring the already constructed 110/35 kV Škaljari substation in Kotor into operation.
I would like to point out that these buildings were constructed in accordance with modern technical solutions and the principle of minimal negative impact on the environment, that they are significantly smaller in size and are far more acceptable in terms of space and visual appeal compared to existing buildings of the same purpose. In doing so, we are, among other things, keeping pace with our long-announced commitment to do our utmost to adhere to the principles of sustainable development and environmental protection.
I believe that our investment projects are encouraging investment activity in Montenegro and the region, particularly those concerning the construction of new sources of electricity and the strengthening of the regional transmission network. To meet these objectives, we will continue with the intensive implementation of the undersea interconnector project with Italy, as well as other investment projects, for which approximately €150 million is planned over the next five years. We want our activities, particularly our investment projects, for which we have received clear institutional support, to be accepted on a broader social level, and in this regard, we are ready and open to continuing the public dialogue in order to find a compromise between the necessity of building transmission network facilities and protecting the interests of the stakeholders. always bearing in mind that the transmission network in Montenegro is part of the technically integrated European transmission network and must be developed and maintained in accordance with the safety criteria prescribed at the European level.
The key conditions for the realisation of our plans are, first and foremost, a stable and predictable regulatory framework, as well as the urgent resolution of the issue of very high receivables from the largest users of the transmission network, who are also our most important partners. In my opinion, the quality of that partnership, which has been impaired for far too long, not only affects the performance of the companies themselves, but is also crucial for the successful functioning of Montenegro's electricity system, and I would dare say, the entire Montenegrin economy. I hope and strongly believe that the days ahead are for us to dedicate to the finalisation of the settlement agreement, thereby freeing our companies from a years-long burden that seriously jeopardises their operations and puts the fulfilment of our long-term goals at risk. Institutional support and backing from all stakeholders are, once again, an essential prerequisite for success, particularly given the complexity and specificity of the problem we are addressing, taking into account the obligation to create conditions for the performance of activities of public interest, for the benefit and satisfaction of our customers, as well as the shareholders and owners of energy entities.
A top priority for us is to maintain a high level of cooperation with the European association of transmission system operators, ENTSO-e, and the Energy Community of South-East Europe, as well as to preserve our leading position in openness to regional initiatives such as the Regional Auction House, the Centre for Security Coordination and the establishment of an electricity exchange, thereby contributing to the integrative processes to which our state and society aspire.
Finally, I would like to take this opportunity to thank the members of the Board of Directors, the management team, all employees, as well as those who were until recently our employees, and to those who have recently become retirees, for their cooperation and contribution to achieving our business goals, and to you, our esteemed guests and colleagues, thank you for gracing today's ceremony with your presence."
The period behind us can certainly be declared a period of complete commitment to socially responsible business, as our company has implemented a whole series of activities aimed at promoting such a policy. That this business policy is the right one is confirmed by public opinion, namely the awards CGES received this year for its social philanthropy projects.
We will set aside donations to the Institute for Child Health, which represent yet another affirmation of our commitment to being socially responsible. Aware of all the challenges faced by our healthcare institutions, our choice was the 'A' Paediatric Department, as well as participation in the fundraising dinner where funds were also allocated to this Institute.
The Head of the Institute for Childhood Diseases, Mrs Sonja Milašinović, expressed in words of praise how successful we have been in our intention and desire to provide the youngest patients with the best possible conditions.
This highly valuable company was built, first and foremost, by its employees. We are proud of them, as day in, day out they strive to meet every challenge.
The potential of any company is measured by the number of individuals capable of initiating everything necessary to meet the demands that our environment places upon us.
This year, CGES has once again honoured its pensioners with a suitable gift, as they have left their mark through their dedication and work, as well as their notable contributions within our company.
