The Montenegrin government has approved the foundational information for negotiating a loan agreement with the International Bank for Reconstruction and Development (IBRD) for the Energy Sector Decarbonization Project. This includes a draft loan agreement worth €31 million.
The primary goal of the decarbonization project is to improve energy efficiency in public buildings, such as those belonging to the University of Montenegro, and to enhance the operational efficiency of the country’s electricity distribution network.
As noted in the report, implementing this project is vital for ensuring continuity in energy and environmental initiatives and for providing stronger support for reforms in the energy sector and the overall decarbonization process. These efforts align with Montenegro’s international commitments to reduce CO2 emissions, increase the use of renewable energy sources, and improve energy efficiency by 2030.
During the visit of the IBRD expert team from September 23 to 27, key project details were finalized, including its objectives, design, implementation arrangements, and budget. The total estimated value of the project is €33.8 million, with funding coming from two sources: €31 million in loans from the IBRD and €2.8 million from the state’s own contribution. The project includes three components: improving energy efficiency in public facilities, enhancing the operational efficiency of the electricity distribution network, and providing technical assistance for project implementation, as announced by the government.
