Minister of Finance, Mr Aleksandar Damjanović, and the Head of the European Bank for Reconstruction and Development (EBRD) office in Montenegro Remon Zakaria, signed a Guarantee Agreement today between the two institutions, for an Amendment to the credit arrangement agreement between the Montenegrin Transmission System Operator AD (CGES) and the EBRD, for the financing of the Variable Attenuator Installation Project at the Lastva Substation, in an amount of up to 9 million euros.
The amendment to the credit agreement was signed on behalf of CGES by the firm's Executive Director, Ivan Asanović.
Taking into account the liquidity and continuous positive results of CGES's operations, as well as the need to invest in improving the security of the electricity transmission network, as one of the pillars of the development of the energy sector in Montenegro, Minister Damjanović pointed out that the issuance of a state guarantee for the aforementioned credit arrangement is economically justified and provided for in the 2023 Budget Law. for the year 2023, as well as the accompanying Decision on Borrowing.
The Executive Director of CGES, Ivan Asanović, announced that by extending the Credit Agreement between the company he leads and the EBRD, which was concluded in 2013. The extension of the Credit Agreement between the company he leads and the EBRD, which was signed in 2013 with the aim of investing in the transmission network, namely the quality and modernisation of services, has created the basis for finalising the Lastva TS Project, and for the accelerated procurement of a variable shunt reactor and a connection, which will permanently enable the secure operation of the electricity network and interconnection with Italy.
The Head of the EBRD's office for our country, Remon Zakaria, stated that this is one in a series of successful projects that the bank he represents is implementing with Montenegro, and expressed the expectation that cooperation in all areas financially supported by the EBRD will be expanded and intensified.
An amendment to the loan agreement for 9 million euros, signed today, defines the availability period for the funds until 15.11.2025. The amendment to the €9 million credit agreement, signed today, defines the availability period of the funds until 15 November 2025, and a variable interest rate, which, in accordance with the EBRD's standard terms, is the six-month EURIBOR + 1%, with the amendment adding the option to elect fixed-rate interest as defined in the EBRD's Standard Conditions.
