Gvozd Windfarm



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

30 Nov 2022


Concept Reviewed

PSD disclosed:

10 Jun 2022

Project Description

Up to EUR 82 million A/B Loan to Elektroprivreda Crne Gore AD Niksic ("EPCG"), the Montenegrin national power utility, for the purpose of financing the development, construction and operation of a 54.6 MW wind power plant located near village Gvozd, municipality of Niksic, Montenegro (the "Project").

Project Objectives

The Project will result in the addition of 54.6 MW renewable energy generation capacity to the country, which is expected to produce approximately 150 GWh of renewable energy per year. The construction of new renewable energy generation capacity in Montenegro is fundamental to the country's plans regarding the diversification of electricity generation to substitute its legacy thermal coal assets, which currently provide almost half of Montenegro's domestic electricity generation.

Transition Impact

ETI score: 60

The operation will be 100% GET compliant. Increased renewable energy generation capacity and production will deliver CO2 emission savings of approximately 109,129 tonnes annually (to be confirmed during due diligence).

Client Information


Elektroprivreda Crne Gore AD Niksic ("EPCG"). EPCG is the largest electricity utility company in Montenegro and generates c. 95% of national electricity output. EPCG produces the bulk of its energy from three power plants, consisting of the 225 MW lignite-fired plant Pljevlja, the 307 MW Perucica hydro power plant, and the 342 MW Piva hydro power plant. EPCG also operates several small hydropower plants with a total capacity of 9 MW; the Sponsor is also the 100% owner and operator of the Montenegrin distribution company CEDIS (also client of EBRD), and it supplies 370,000 consumers with electricity. 

EBRD Finance Summary

A/B loan up to EUR 82 million.


Additionality on this Project stems from the terms (longer loan tenor than is generally available in Montenegro), resource mobilisation (additional commercial funding through A/B loan or parallel loan), and conditionalities (implementation of ESAP, procurement in accordance with the EBRD's Procurement Policies and Rules).

Environmental and Social Summary

Categorised B (2019 ESP). The Project is in the near vicinity of an operational Bank financed Category B Project (DTM 44546) in Montenegro and is being developed in partnership with the same developer. Both the existing and the new project will share a substation. Based on a review of project documentation and the national EIA, the Project has been categorised B. Previous experiences with the Client has shown a robust capacity to manage projects in line with EBRD's PRs and international best practice. The Project is currently subject to local environmental impact assessment (EIA) with associated public consultation and public disclosure in accordance with local/national legal and permitting requirements. The EIA has been already approved by the local authorities. Although not required by local legislation, social impact assessment has been conducted by reputable consultant.

As per the national EIA Report, the capacity of the Project and the small number of turbines means that environmental impacts are likely to site-specific and readily addressed through mitigation measures and E&S management provisions. The area of "Gvozd" is situated within the undeveloped part of the Municipality of Niksic and does not belong to the areas protected by regulations on natural or cultural heritage. Environmental and social due diligence (ESDD) is currently undertaken by independent consultants that will assess the project impacts and risks related to: Impacts on habitats and biodiversity, land acquisition and easement rights versus EBRD PR5 requirements, occupational health and safety, visual impact and noise, stakeholder engagement, site access during operations and labour management provisions. The Company is currently developing an NTS and SEP, which will be based on the environmental and social assessments carried out for the project. Based on the ESDD, an Environmental and Social Action Plan ("ESAP") which has been updated on May 10th, 2022,will be checked, revised and will be upgraded and agreed with the Company before Board. The Bank will monitor the project on yearly basis through annual Environmental and Social Reports (AESR). This PSD will be updated once ESDD is complete and the NTS and SEP will be attached.

Technical Cooperation and Grant Financing


Company Contact Information

Mr. Miro Vracar, dipl.ecc (CFO)
+382 40 204-160
EPCG AD Niksic / Montenegrin Electric Enterprise AD, Vuka Karadzica 2, Niksic Montenegro

PSD last updated

10 Jun 2022

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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