The Draft Budget Law for the upcoming year, currently under review in parliament, outlines several potential government guarantees for various loan agreements aimed at financing infrastructure projects in Montenegro.
One proposed guarantee involves a loan between the Regional Water Supply of the Montenegrin Coast and the European Bank for Reconstruction and Development (EBRD) for the second tranche of funding to improve the regional water supply system. The loan could be as high as 12 million euros.
Additionally, the government could issue guarantees for a loan between the Montenegrin Transmission System (CGES) and EBRD to finance the construction of the 110 kV power line between Vilusi and Herceg Novi, with a loan amount of up to 18 million euros. Another potential guarantee could support a loan for CGES from EBRD, aimed at expanding the capacity of the 220 kV transmission line, with a value of up to 15 million euros.
Further guarantees might be issued for a loan between CGES and the French Development Agency (AFD) to finance the reconstruction and expansion of the 220/110 kV Perućica transformer station, along with the procurement of a 400/220 kV autotransformer for Pljevlja 2, with a loan of up to 25 million euros.
The state may also back a loan arrangement between the Regional Water Supply of the Montenegrin Coast and a lender to be determined later this year, for further improvements to the regional water supply system, with an amount up to six million euros.
Other projects include guarantees for a loan between the Port of Bar and an undisclosed lender for the purchase of cranes and related equipment, with a loan of up to five million euros.
Lastly, guarantees may be provided for a loan between Montenegrin Railway Transport (ŽPCG) and a lender, aimed at financing the repair of three electric motor trains and two electric locomotives, with a loan of up to 6.5 million euros.
These guarantees are part of the government’s strategy to fund critical infrastructure projects across multiple sectors, from energy to transport, to support the country’s continued development.
