A loan agreement of EUR 82 million for the VE Gvozd project was signed

Elektroprivreda Crne Gore (EPCG) signed with the European Bank for Reconstruction and Development (EBRD) an agreement on a credit arrangement for the financing of the Gvozd wind farm construction project worth EUR 82 million.
Project activities on the construction of the Gvozd Power Plant, with a total installed capacity of 54.6 MW and an expected annual production of about 150 GWh, include the phased construction and commissioning of typical plateaus for mounting wind turbines and foundations on which the wind turbine poles will be placed, transformer stations 33/ 110 kV Gvozd at the project location, reconstruction of the transformer station 33/110 kV Krnovo, then construction of a single transmission line 110 kV TS Gvozd – TS Krnovo, length 3125 m, as well as construction of a single transmission line 110 kV TS Gvozd – TS Nikšić, length 14730 and reconstruction of the transformer station 35/110 kV Nikšić.
The contract was signed by the president of the EPCG Board of Directors, Milutin Đukanović and the executive director, Nikola Rovčanin, as well as Matteo Colangeli, the regional head of the EBRD for the Western Balkans and Remon Zakaria, the head of the EBRD for Montenegro. The representative of the project company Green Gvozd, Krešimir Čondić, also signed the contract.
The President of the EPCG Board of Directors, Milutin Đukanović, said after signing the contract that the management motto “EPCG is working!” was fully confirmed by this large project, which with an installed capacity of 54.6 MW, will annually produce around 150 GWh of electricity.
– Production from renewable energy sources is a great opportunity, not only for EPCG, but also for the state of Montenegro, for the entire society and overall development – said Đukanović.
Executive Director Nikola Rovčanin believes that the construction of the Gvozd VE is one of a series of projects that EPCG is implementing, but the key one in the mosaic that the company wants to do in the next five to six years.
– This is a historic day for EPCG, for the entire energy system of the country, because the formalization of these contracts will establish the foundations of further energy development, not only through a new wind farm, but also floating solar and a number of other projects – pointed out Rovčanin.
The construction of VE Gvozd and the necessary infrastructure for connection to the electric power system of Montenegro will be fully financed from credit funds without the anticipated participation of investors, with an appropriate grace period during construction, so that the project will essentially pay for itself.
Remon Zakarija, head of the EBRD for Montenegro, said that VE Gvozd will indeed be a turning point in the development of the company, because it is about the construction of the first EPCG wind farm and the largest investment in the last 40 years, when it comes to the energy system.
– When the VE Gvozd is in operation, it will meet the energy needs of about 25,000 households, reduce greenhouse gases by 104,000 tons, which is equivalent to the harmful gases emitted by 62,000 cars, so the utility effects are huge – Zekarija said.
The executive director of the company Green Gvozd, Krešimir Čondić, expressed his satisfaction with the fact that this company, together with the EBRD, built the Krnovo power plant in 2017, and that it is now engaged in the construction of the Gvozd power plant.
– At the beginning of July, we expect to announce the tender for the “balance of plan”, i.e. construction and infrastructure works, by the end of the year, the conclusion of the tender for transmission lines and transformer stations, the next year in 2024 for the completion of all works and in 2025 the start of the work of VE Gvozd – said Čondrić.
The loan agreement for the financing of the Gvozd wind farm construction project was preceded by the signing of Annex 8 of the land lease agreement and the construction of the wind farm between the Government of Montenegro and Krnovo Green Energy, and the agreement on the regulation of rights and obligations, which, in addition to the executive director of EPCG Nikola Rovčanin and the director of IVICOM – of Krešimir Čondrić, signed by Ervin Ibrahimović, Deputy Prime Minister for Regional Development and Minister of the Ministry of Capital Investments.
Ibrahimović said that the state and the Department of Capital Investments, headed by him, gave strong support to this project.
– We are aware of the potential of renewable energy sources and the need to build new energy capacities. We have recognized the necessity of investing in renewable energy sources and this is only one part of the planned activities that should and must be implemented if we want to justify the epithet of ecological state. I believe that this is one of the best results of the work of the Ministry of Interior and the Government in this mandate, in the field of energy, and a lot was done in the previous period. The importance of this project is also shown by the fact that, after 1982, this is the first production capacity owned by the state. The state’s focus must be on the development of such and similar projects, and the Ministry of Capital Investments will continue to work intensively on this in the coming period – emphasized Ibrahimović.
VE Gvozd should be built in 18 months from the date of commencement of works.

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