CGES BIH-MNE-ALB 220kv OHL reconductoring

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The EBRD is considering providing a sovereign-guaranteed loan of up to €15 million to Crnogorski Elektroprenosni Sistem AD ("CGES", or "the Company"). The proceeds of the EBRD financing will be used to support the upgrade of the Trebinje (BIH) - Peruiica (MNE) - Podgorica (MNE) - Vau i Dejes (ALB) power transmission corridor, increasing its capacity from approximately 300 MW to 600 MW. The upgrade will primarily involve replacing existing conductors with High Temperature Low Sag (HTLS) conductors along the 220 kV overhead transmission line that runs through Montenegro, from the border with Bosnia and Herzegovina, through key substations at the Peruiica hydropower plant and the main Podgorica substation, to the border with Albania.

Project ID 56649

Status Exploratory

Location

Montenegro

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Dragan Perunovic
dragan.perunovic@cges.me
+382 20 407 646
www.cges.me
18 Bulevar Svetog Petra Cetinjskog, Podgorica 81000, Montenegro

Project ID 56649

Status Exploratory

Location

Montenegro

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

19 Nov 2025

Disclosure date

19 Sep 2025

Project Description

Project Objectives

The Project will strengthen regional energy connectivity and grid resilience across the Western Balkans aimed at doubling its transmission capacity from 300 MW to 600 MW. This upgrade will be instrumental in facilitating the integration of a substantial portfolio of Renewable Energy (RE) power plants into the regional grid. The realization of this project is projected to significantly reduce energy losses.

Transition Impact

ETI score: 76

ETI [76]

The Project holds significant importance in ensuring the continued stable and safe operations of the transmission system of Montenegro. The Project targets the "Resilient" Transition Impact quality as it includes a dedicated Technical Cooperation (TC) supporting the Company's governance with a TC for the assessment of CGES' readiness to establish regional available transfer capacity market coupling (i.e. allocation of cross-border capacity) in support of RES penetration and regional trading and in line with the country's EU approximation process. The second quality is "Green" as the Project implementation will allow the connection of new renewable energy sources, and will lead to a reduction of transmission losses, thereby reducing CO2 emissions.

Client Information

CRNOGORSKI ELEKTROPRENOSNI SISTEM AD (CGES)

CGES is the Montenegrin transmission system operator, responsible for the ownership and operation of substations and transmission lines across 400kV, 220kV, and 110kV voltage level. The Company manages a transmission network consisting of 59 lines with a total length of approximately 1,512 km. Total transformation capacity comprises 4,166 MVA (with a total of 55 transformer units). CGES plays a vital role in regional energy integration, with interconnections to neighbouring power systems in Serbia, Kosovo, Bosnia and Herzegovina, Albania, and Italy, via a strategic undersea cable, strengthening Montenegro's position within the broader European electricity market.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 17,000,000.00

Additionality

The Bank is bridging the funding gap by promoting a loan tenor for Montenegrin transmission system operator which is not available in the local market.

Environmental and Social Summary

Category B (ESP 2024). The change of conductor and associated equipment on an existing transmission line is associated with site-specific Environmental and Social impacts, which can be readily addressed and mitigated with the implementation of an ESAP. ESDD is being carried out by an external party and consist in a review of client capacity and management plan, stakeholders' engagement activities around the Project and E&S sensitive receptors alongside the corridor of the existing line. This PSD will be updated when the due diligence process is completed.

CGES is an existing client of the Bank and has the institutional capacity to structure the Project to EBRD ESRs. Company has adequate E&S procedures in place, including ISO-certified Environmental and Health & Safety Management systems. Such systems will be cascaded to the Project. Management plans will be developed by the Contractor and cascaded as appropriate to sub-contractors. CGES has comprehensive labour policies and procedures in place, including worker grievance mechanism and Code of Conduct for suppliers. A limited workforce is expected to complete the Project, and no worker accommodation is contemplated.

Preliminary results of ESDD demonstrated that sensitive receptors (households, vineyards) are present in the immediate vicinity of some pylons, and the work will be organised to avoid impact on land (including land access), health and safety or power supply disruption of the surrounding communities, with specific attention to vulnerable people. Any unlikely damage to land or disruption of land access would be addressed and compensated in line with EBRD ESR 5. The work will be scheduled to avoid any service disruption on the railway in the immediate vicinity of a portion of the corridor.

The line corridor encroaches the Nature Park Zeta River and the candidate Emerald site iemovsko Polje, both Important Bird Areas. Specific training will be provided to any workers in these areas and the breeding season will be avoided to phase out any impact during Project work. Although the Project will not result in additional long-term impacts on the sensitive bird species and habitats in these areas, additional biodiversity surveys will be carried out, and design-based mitigation measures will be explored on the corresponding portions of the line.

A Stakeholder Engagement Plan ("SEP") including a grievance process will be developed for the Project and will be disclosed in English and Montenegrin on Bank's website. Early engagement with the authorities and adjacent communities has been undertaken, a dedicated Community Liaison Officer will be designated for the project before the beginning of the work, responsible for the implementation of the SEP and management of external grievances throughout the lifetime of the Project.

An Environmental and Social Action Plan ("ESAP") will be developed and agreed on the Project. The Bank will closely monitor the implementation of the Project through E&S reporting from the client.

Technical Cooperation and Grant Financing

Technical cooperation funds have been provided for environmental and social due diligence.

Additionally, it is envisaged that further technical cooperation support will be provided to assist the Company with the diagnostic of the CGES' readiness in the set-up of a regional Day-Ahead Market Coupling in Available Transfer Capacity mode (i.e. allocation of cross-border capacity) in support of RES penetration and regional trading and in line with the country's EU approximation process.

Company Contact Information

Dragan Perunovic
dragan.perunovic@cges.me
+382 20 407 646
www.cges.me
18 Bulevar Svetog Petra Cetinjskog, Podgorica 81000, Montenegro

PSD Last Updated

19 Sep 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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CGES BIH-MNE-ALB 220kv OHL reconductoring

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)