EPCG Solidarity loan



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

28 May 2020



PSD disclosed:

07 May 2020

Project Description

This project was approved in the context of the Bank's response to the COVID-19 pandemic.  To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information.  Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Provision of an up to EUR 50 million senior loan facility to support the Montenegrin utility company Elektroprivreda Crne Gore AD Niksic (the "Company", "EPCG").

Project Objectives

The proposed liquidity loan will support the Company and Montenegro in their clean growth and decarbonisation agenda and ensure the stability of vital infrastructure provision.

Transition Impact

ETI score: 80

The aim of the proposed transaction is to preserve the stability of the provision of vital infrastructure provision and to protect the Company's existing modernisation, efficiency and smart grid adoption transition gains, notably following a successful smart metering deployment programme. More than 80% of customers in Montenegro already have smart meters and the Company aims to reach 85% by the end of 2020.

Client Information


EPCG is the national electricity utility of Montenegro, active in production, distribution (through 100% owned subsidiary Crnogorski Elektrodistributivni Sistem DOO Podgorica (CEDIS)) and supply of electricity. The Company is 99% owned by the government of Montenegro and 1% is floated on the Montenegro stock exchange.

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 50,000,000.00


The Bank is highly additional in absence of immediate commercial bank capital, constrains of which are not linked to EPCG capacity to receive such financing.

Environmental and Social Summary

Categorised B (2019 ESP). The provision of short-term working capital is not associated with any new environmental or social risks or impacts. Due diligence for this transaction has comprised a review of the company's annual report, its corporate environmental protection plan and progress with implementation of the environmental and social action plan (ESAP) for the Bank's previous projects with EPCG. The company has provided COVID 19 information and training for its employees and where possible staff are working from home. EPCG has no plans to introduce temporary or permanent redundancies.

EPGC is the national power company of Montenegro responsible for electricity generation, distribution and supply. It operates one 225MW coal-fired plant and around 670MW of hydropower at two large sites and couple of smaller ones. It directly employs just over 900 people and supplies electricity to around 350,000 customers. The company operates an environmental management system that is certified to the ISO14001 standard. EBRD's previous transactions with company have financed the installation of smart meters for domestic consumers. Environmental and social reporting for these projects has been comprehensive, the ESAP has been implemented to a good standard, and the Bank has not received any complaints about these projects.

This loan does not require additional monitoring or reporting. EBRD will continue to monitor EPCG's environmental and social performance via reporting for the previous transactions. 

Technical Cooperation and Grant Financing

Not applicable.

Company Contact Information

Rajko Sebek
+382 67 681188
Elektroprivreda Crne Gore Ulica Vuka Karadzica br. 2 81400 Niksic; Montenegro

PSD last updated

07 May 2020

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 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 the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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