EPCG Metering and Distribution Project

Location:

Montenegro

Project number:

40219

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Target board date:

26 Oct 2010

Status:

Repaying

PSD disclosed:

26 Nov 2009

Translated version of this PSD: Montenegran

Project Description

EBRD is considering providing a corporate loan of up to €38 million to Elektroprivreda Crne Gore AD Nikšić ("EPCG") to finance the purchase and installation of c.69,000 modern electricity meters and the associated infrastructure and software in the Montenegrin electricity distribution system. These measures will target the existing level of electricity losses in the network with the aim of reducing these from 24% to 14% over the project implementation period. They will also assist in increasing bill collections from the current level of 90%.

Transition Impact

The transition impact of the project stems primarily from the following:

  • The accurate metering of, and payment for, power will enhance the development of an efficient electricity market, and create accurate incentives to optimise power use and improve efficiency. It will thus reduce Montenegro's power c consumption and carbon intensity.
     
  • The introduction of advanced metering technology will enable the implementation of tariff methodologies aimed at improved demand side management, helping to optimise power system operation and improve energy efficiency.
     
  • A substantial reduction of losses in the distribution system and increase in contributions will improve EPCG's operational performance.

 

The Client

Elektroprivreda Crne Gore AD Nikšić, the vertically integrated electricity company of Montenegro, owned 55% by the Government of Montenegro and 43.7% by A2A SpA, a municipally owned Italian utility.

EBRD Finance

A corporate loan of up to €38 million.

Project Cost

€43 million.

Environmental Impact

The Project has been categorised B under EBRD's Environmental and Social Policy (2008), requiring an Environmental and Social Due Diligence ("ESDD"). The ESDD was undertaken by an international independent consultant consisted of an Environmental Audit of the existing assets and an Environmental Analysis of the proposed investment programme.

The ESSD has confirmed that the EBRD-funded project will not give rise to material environmental or social impacts and will comply with EBRD's Performance Requirements. Nevertheless, the ESDD identified, among other things, needs to strengthen further EPCG's institutional capacity in terms of its environmental, health and safety ("EHS") management and to develop an investment plan to improve the environmental performance of EPCG's assets. This will be addressed through the implementation of an Environmental and Social Action Plan ("ESAP"). The ESAP will include, amongst other requirements, the need for a formalized EHS management system in line with best international practice as well as development of a stakeholder engagement programme.

EBRD will monitor the project to asses the status of implementation of the ESAP.

Technical Cooperation

EBRD's technical, environmental and procurement due diligence has been supported by an external consultant under a EUR 95,000 contract funded by the Spanish Government.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.