KfW continues to fund energy efficiency in public buildings in Montenegro

Germany’s KfW Development Bank is giving Montenegro a loan of EUR 45 million and a EUR 4.8 million grant for the third phase of the project for energy efficiency in public buildings. On behalf of the government in Podgorica, minister of finance Darko Radunović signed the credit contract while minister of economy Dragica Sekulić inked the part facilitating the donation.

“This is a great opportunity both for you and for us,” said Pablo Obrador Alvarez, KfW’s chief of energy and transport in Southeast Europe and Turkey. “We have a large portfolio in the Balkans in the segment of energy efficiency. However, Montenegro was first and we learned from it as an example. This is where we had our first experiences and learned a lot together about implementation. We look forward to further challenges and the realization of the program. As far as KfW is concerned, we will remain your faithful partner.” The ceremony which will lead to the improvement in energy efficiency in public buildings was attended by deputy ambassador of Germany Cristoff Breuning.

Sekulić asserted the loan for the third phase has a duration of 15 years of which the first five are the grace period, with a fixed interest rate of 1.06%. “With the first two, we managed to complete the reconstruction of 33 structures in the last ten years or so. Some of them were educational institutions and others are for welfare. I am certain that everyone who had the opportunity to use the buildings, particularly the schools, saw the great difference. We achieved savings of up to 60% of consumption in the units,” the economy minister said.

The loan has a duration of 15 years of which the first five are the grace period, with a fixed interest rate of 1.06%

She added that the donation came via the Western Balkans Investment Framework or WBIF, an instrument of the European Union.

KfW is also active in the sectors of electric power and environmental protection in the former Yugoslav country and the entire region. National electricity monopoly Elektroprivreda Crne Gore, EPCG in short, took a EUR 33 million loan this year from the German bank for the second phase of the refurbishment and modernization project of hydropower plant Perućica. It encompasses hydromechanical and electrical equipment and the generating units A5, A6 and A7, the hydromechanics in the valve chamber, hydrological-hydraulic measurements, installing the integrated informational system and the construction works – the rehabilitation of canal Opačica and its elevation together with the overhaul of the Moštanica canal. The contractors are scheduled to commence the operation next year.

Inter alia, the bank supported the construction of the facility for wastewater treatment in Podgorica, also alongside a grant from WBIF, of EUR 10.15 million. The project is worth EUR 50.35 million and it includes KfW’s loans of EUR 30 and EUR 5 million each.