News

EBRD co-finances hydropower unit on Bistrica stream

Published

March 10, 2016

Comments

0

Share

Published:

March 10, 2016

Comments:

0

Share

As consortium Hydro Bistrica, concessionaire for the construction of small hydropower facilities on Bistrica river, reached an agreement with the European Bank for Reconstruction and Development (EBRD) about additional financing, the Government of Montenegro approved the contract for a loan of EUR 6 million. The concession contract from April 2014 enables the construction of one electricity generating unit with the capacity of 3.5 MW on the tributary of Ljuboviđa in the vicinity on Bijelo Polje in the country’s north. Planned annual production is 11,32 GWh. The second phase, of 24 months, in the implementation of the contract, started in March last year, when the construction permit was issued.

Hydro Bistrica, registered in Podgorica, is the project company. The consortium consists of Synergy, also based in the Montenegrin capital, Vodni Zdroje from Prague, Czech Republic, Triangle GC ING from Peć, Kosovo*, and Gradnja, Bijelo Polje. The Ministry of Economy said EBRD, the lender, asked for guarantees that legislation related to renewable energy sources will be respected during loan repayment. The statement adds the ministry participated in talks to help the concessionaire satisfy conditions for financing. The state didn’t take up any financial obligations while the draft contract was agreed on in accordance to existing regulation, according to the document.

The additional contract is tripartite, in line with the practice in project financing, but the state didn’t acquire any rights or obligations in financing, the ministry said. In the case that the consortium is responsible for a potential termination of the contract, the creditor can exercise its step-in right and suggest to the government that another company enters the project. The state guarantees for the obligations of power market operator COTEE, which it founded and which makes agreements with privileged producers.

The first hydropower plant on Bistrica was launched in 1936. It was renewed after World War Two and shut down in mid-1970s.

 

* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.

Related Articles

Azerbaijan on good track to double gas exports to EU, start supply of green energy

Azerbaijan on track to double gas exports to EU, start green energy supply

06 February 2023 - The 9th ministerial meeting of the Southern Gas Corridor Advisory Council in Baku brought together representatives from 16 states and the EU

Mostar to become first city in BiH with solar power plant for self-consumption

Mostar to become first city in BiH with solar power plant for self-consumption

06 February 2023 - A few weeks ago, The Sarajevo Canton announced a similar initiative - to establisha a public company for renewables

Greece subsidize rooftop photovoltaics only if batteries included

Greece to subsidize rooftop photovoltaics only if batteries are included

06 February 2023 - Greece will launch a public call next month for subsidies for rooftop photovoltaics that would be paired with batteries

Europe s largest solar power Portugal Iberdrola Fernando Pessoa

Europe’s largest solar power project is underway in Portugal

06 February 2023 - "I greeted the sun by raising my right hand." Europe's largest solar power plant will be named after Portuguese poet Fernando Pessoa.