The project of construction of Trans-Balkan Electricity Corridor is a is a vital part of the creation of the regional electricity market and the embodiment of a strategic investment of regional and pan-European significance, said Johannes Hahn, Commissioner for European Neighbourhood Policy & Enlargement Negotiations.
Commissioner Hahn visited today the location of substation Lastva in Lastva Grbaljska, together with the Minister of Economy Dragica Sekulić, Minister of European Affairs Aleksandar Andrija Pejović, Chairman of the Board of Directors of Crnogorski elektroprenosni sistem (CGES) Dragan Laketić and Director for Southeast Europe and Turkey within the KfW Development Bank Christoph Tiskens.
“This is one of the crucial projects in the Connectivity Agenda that will help to connect, in terms of electricity, Romania, Serbia, Montenegro, Bosnia and Herzegovina, and Italy. This project and everything what was done indicates the determination of European and Montenegrin institutions and shows that all assumed obligations can be fulfilled”, said Commissioner Hahn.
According to his words, this project is important not only for regional connection and the corridor, but also for energy security and development of tourism through providing continuous electricity supply. Commissioner Hahn reminded that the European Union supported this project € 25 million, and thanked KfW and EBRD for loans of € 25 million and € 60 million, as well as to Montenegro for contributing with € 17 million.
Minister of Economy Dragica Sekulić said that the project of construction of Trans-Balkan Electricity Corridor, together with the project of railway interconnection of Montenegro and Serbia for which the EU also earmarked significant funds, is among the first projects whose European significance was recognised on one of previous summits of leaders of Western Balkans.
“In that manner, I believe we gave a concrete incentive to our neighbours to create projects that will integrate and strengthen our region, and for which the European Union will selflessly provide its support. We as region have a significant energy potential which should be used, potential that can make the Western Balkans a serious electricity producer and important transit point in Europe – exactly as we expect that Montenegro, thanks also to this project, will become an energy junction point of the region” said Minister Sekulić.
Minister of European Affairs Aleksandar Andrija Pejović underlined the significance of support from the EU through funds for infrastructure and political framework offered by the Berlin Process and expressed his expectation that the EU, especially through the Western Balkans Investment Framework, will continue to support implementation of infrastructure projects in Montenegro.
“The EU, through the Berlin Process, directed special attention to regional connection through infrastructure project in the field of energy and traffic, which will lead to strengthening of connections within the region and better connection of the Western Balkans with EU countries”, said Minister Pejović.
He emphasised that he is glad due to the fact that Montenegro is the first among states in the region by the use of funds and fulfilment of obligations from the Berlin Process.
“On that line, we expect from the EU to soon earmark additional funds for preparation and implementation of projects in the field of traffic and environment. From our side, we in the Government will soon adopt the innovated Unique List of crucial projects, in which we will define further directions od development of Montenegro in infrastructure”, said Minister Pejović.
The Chairman of the Board of Directors of Crnogorski elektroprenosni sistem (CGES) Dragan Laketić said that from the construction of substation in Lastva, overhead line from Lastva to Pljevlja and further to Bajina Bašta and neighbouring systems, and necessary accompanying reconstruction of the Montenegrin grid, multiple positive effects are expected for both our company, as transmission system operator performing an activity of public interest, and other energy undertakings and transmission system users. Namely, with the construction of new energy corridor, preconditions are created for implementation of new investments in energy, primarily in the field of electricity generation from renewable energy sources. On the other hand, this project will ensure to users of the Montenegrin transmission system significantly higher capacity, security and reliability of the gird, enabling assumptions for a more quality performing of activity and further development.
What is particularly important in the context of the agenda for connection with neighbours and broader with EU countries is that CGES, by implementing the interconnection with Italy and Serbia, i.e. by establishing physical connections with the mentioned systems, will give its contribution to the development of regional electricity market and its integration into a unique European market, emphasised Laketić.
“The investment cycle in progress would represent a big challenge also for companies and systems much bigger than ours, so we had to focus all our capacities on the implementation of this project. I can confirm with pleasure that we additionally developed our capacities and I hope that we will use in the right way the opportunity to acquire new knowledge and experience that will allow us, also in the future, to be capable to implement the most complex projects from the field of electricity transmission activity”, emphasised Dragan Laketić.
“Awarding of grant for the implementation of interconnection with Serbia by the European Union represent a strong support to what was done by Montenegro and CGES within their domain on the implementation of the Connectivity Agenda and integration into the European energy market, whereby providing faster implementation of projects with regional dimension, without additional burden on tariffs for consumers in Montenegro.”
“By understanding that the electric power sector cannot be closed within national borders and trapped between potentials and limitations, and that connection with the region and building of energy bridges represents the future, I would like to underline that in CGES, who always fully supported regional initiatives, you have a devoted partner for further work”, concluded Chairman of the Board of Directors of CGES, by expressing it gratitude to all friends of this project for their previous contribution.
Director for Southeast Europe and Turkey within the KfW Development Bank Christoph Tiskens said that the result of a 17-year long cooperation between Germany and Montenegro reflects in € 440 million in grants and loans which KfW earmarked for development of financial, municipal, energy and traffic sector in Montenegro.
“Last year, KfW was selected as the “leading financial institution” for the implementation of the € 25 million grant by the European Union as support to the project of Trans-Balkan Electricity Corridor in Montenegro. In addition, KfW is the leading financial institution for the implementation of additional infrastructure EU grants in the amount of € 6,6 million referring to the Trans-Balkan Electricity Corridor in Serbia, and € 14 million for the 400 kV line in Albania up to the Macedonian border, all as part of the Connectivity Agenda established within the Berlin Process” said Tiskens.
He added that they plan also other concrete projects in the field of hydropower and energy efficiency.
“It is implied that we, as leading financial institution, are on your side also for other EU infrastructure projects that you want to be co-financed by WBIF, such as the project of construction of plant for wastewater treatment in Podgorica”, said Tiskens.