The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to €15 million to Montenegro’s electricity transmission system operator, Crnogorski Elektroprenosni Sistem (CGES), to support the upgrade of a 220 kV overhead transmission line connecting Montenegro with Albania and Bosnia and Herzegovina. The project aims to double the capacity of the Trebinje (Bosnia and Herzegovina)–Perućica (Montenegro)–Podgorica (Montenegro)–Vau i Dejes (Albania) power transmission corridor to approximately 600 MW.
The upgrade will primarily involve replacing existing conductors along the Montenegro section of the line with advanced high-temperature low-sag conductors. The transmission line runs from the border with Bosnia and Herzegovina, passing through the Perućica hydropower plant and the main Podgorica substation, and extends to the border with Albania.
This upgrade will enhance the reliability and efficiency of electricity transmission in Montenegro while strengthening cross-border energy connectivity in the Western Balkans. It is expected to contribute to greater regional integration and a more resilient power system across neighboring countries. The agreement was signed by EBRD Vice-President for Policy and Partnerships, Mark Bowman, CGES CEO, Ivan Asanović, and Montenegro’s Minister of Finance, Novica Vuković.
Mark Bowman emphasized the significance of the project, stating that strengthening electricity transmission networks is essential for energy security and regional cooperation in the Western Balkans. He noted that the modernization of critical infrastructure in Montenegro will support a more reliable and resilient power system, reflecting the EBRD’s commitment to sustainable infrastructure development.
Ivan Asanović highlighted that the investment goes beyond a simple modernization of a transmission line. He explained that upgrading the 220 kV link between Bosnia and Herzegovina, Montenegro, and Albania will enhance electricity transmission reliability and strengthen regional energy connectivity. Doubling the line’s capacity from 300 MW to around 600 MW is a key step towards a more resilient grid capable of meeting growing electricity demand and supporting increasingly intensive regional cooperation. He expressed gratitude to the EBRD for recognizing the strategic importance of the project.
Novica Vuković underlined Montenegro’s commitment to supporting strategic investments through the Ministry of Finance’s guarantee. He noted that the country has a history of backing major projects to modernize its energy sector and remains committed to initiatives that ensure long-term stability and sustainability of Montenegro’s energy system.
He also highlighted the continued partnership with the EBRD, which plays an important role in delivering projects that contribute to Montenegro’s economic development and regional integration. The EBRD has been a leading institutional investor in Montenegro, with over €1 billion invested in more than 100 projects to date. These investments have supported the country’s sustainable development, strengthened infrastructure, promoted private-sector growth, and enhanced regional cooperation and integration.
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