The European Union (EU) and the European Bank for Reconstruction and Development (EBRD) have entered into a €2.5 million agreement to enhance Montenegro’s energy security, investment climate and the governance of state-owned enterprises under the Reform Instrument framework.
Promoting renewable energy and market integration
The EBRD will assist Montenegro in strengthening its regulatory framework to support renewable energy and integrate Montenegro’s energy sector with European and regional markets. This effort is crucial for Montenegro’s green transition and its ongoing process of EU integration. Additionally, the EBRD will work to improve the efficiency and governance of Montenegro’s state-owned enterprises.
EU’s commitment to Montenegro’s EU accession
EU Ambassador to Montenegro, Oana Cristina Popa, reaffirmed the EU’s unwavering support for Montenegro’s path towards EU membership and its commitment to assisting Montenegro in implementing necessary reforms.
- “Reforms are essential to unlocking Montenegro’s growth potential. Energy security and a green transition are critical components. We anticipate that the reforms outlined in the Growth Plan will significantly boost Montenegro’s economy, ultimately leading to a better quality of life for its citizens,” Popa stated.
EBRD’s role in Montenegro’s reforms
Remon Zakaria, Head of the EBRD Office in Montenegro, expressed the EBRD’s enthusiasm for partnering with the EU to support Montenegro in advancing and implementing key reforms in the energy sector and in the corporate governance of state-owned enterprises.
- “This instrument is designed to help Montenegro achieve its goals, fostering sustainable policies and economic reforms that will drive long-term prosperity and facilitate European integration. We believe Montenegro will make significant progress in reforming its energy sector, creating a more robust and attractive environment for investors,” Zakaria remarked.
Ongoing collaboration for energy transition
Montenegro’s Minister of Energy and Mining, Saša Mujović, emphasized the strong cooperation with the EU Delegation, which closely monitors and supports Montenegro’s energy transition efforts.
- “One notable example is the continuous financial and technical support provided through various programs to ensure high-quality implementation of reforms within the set timelines, positively impacting the achievement of final benchmarks for Chapter 15. The EBRD, as a signatory to this agreement, has again demonstrated its reliability as a partner for key energy projects. This agreement signifies continued collaboration on the implementation of the Law on the Use of Energy from Renewable Sources, including the upcoming auctions preceded by a six-month preparatory period involving joint teams of consultants and representatives from the Ministry of Energy and Mining. Besides the auctions, this program will provide EBRD experts to support the integration of the electricity market, and we believe their contribution will be crucial in aligning our regulations with EU standards,” Mujović stated.
Significance of the EU reform instrument
Minister of European Affairs, Maida Gorčević, highlighted the importance of the EU Reform Instrument, designed to support the implementation of crucial reforms related to Montenegro’s EU accession process. In addition to the Growth Plan reforms, the expertise of EBRD colleagues will be invaluable in accelerating the accession negotiations.
- “I am confident that the negotiating team handling Chapter 15 (Energy) will greatly benefit from this additional support, aimed at ensuring our energy policies and standards are in line with those of EU member states,” Gorčević emphasized.
Montenegro and the EU began implementing the Reform Instrument in 2023 with an initial grant of €10 million from the EU budget. The purpose of the Reform Instrument is to provide technical expertise and knowledge transfer to Montenegro for significant structural reforms of its economy. It also offers a platform for joint and coordinated efforts between Montenegro and key international partners to unlock growth potential. Besides the EBRD, other partners currently include the World Bank and the United Nations family.
