EBRD supports the Montenegrin power network

The EBRD is helping to modernise Montenegro’s power distribution network with a €35 million long-term corporate loan to Elektroprivreda Crne Gore AD Niksic (EPCG).  The loan will be used to fund the purchase and installation of modern "smart" electricity meters throughout the grid. EPCG is the sole electricity generation, distribution and supply company in Montenegro.  In the second half of 2009 a major strategic investor, the Italian utility A2A, acquired 43.7% of the company and took on a significant role in its management. The Montenegrin government remains the majority owner of EPCG.
As a result of prolonged under-investment, the company has a high level of losses in the distribution network and a low collection rate. The EBRD loan will help EPCG to address these issues by financing the purchase and installation of 175,000 modern electricity meters throughout the distribution network, as well as the installation of the associated infrastructure.

The project will enable EPCG to improve its overall operational efficiency and cash flow by reducing significantly the level of electricity losses in its network and increasing bill collection levels. These improvements will begin the transformation of EPCG’s network into a modern smart power grid and reduce CO2 emissions by approximately 88,000 tonnes annually. “The power systems of the future will be built around smart grids where electricity consumption is measured instantaneously throughout the network.  We are very happy therefore to support EPCG in a project that will quickly improve its efficiency and cashflow while at the same time transforming Montenegro's infrastructure.   The project will benefit all consumers in Montenegro, making EPCG a more efficient and reliable power provider to its customers,” said Nandita Parshad, Director of EBRD's Power and Energy team.

“This project represents for EPCG a strategic move to improve the service level for our customers and to reduce the losses in the network. Thanks to the support from EBRD, now it can start,” said Enrico Malerba, Executive Director of EPCG. “We are particularly happy about the relationship developed with the EBRD who has clearly understood the peculiarities and the potential of EPCG and has showed great willingness to support this relevant project,” added Massimo Sala, Chief Financial Officer of EPCG.
Previously the EBRD has financed similar projects in Bosnia and Herzegovina, FYR Macedonia and Serbia.

News source: EBRD link: article