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").
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.
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.
ELEKTROPRIVREDA CRNE GORE AD NIKSIC
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
Total Project Cost
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
Company Contact Information
+382 67 681188
Elektroprivreda Crne Gore Ulica Vuka Karadzica br. 2 81400 Niksic; Montenegro
PSD last updated
07 May 2020
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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).
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