Regional Broadband Infrastructure Development

Trans-Balkan Electricity Corridor: Grid Section in Montenegro

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Project Financing

EBRD Loan € 60,000,000
WBIF Grant TA-MON-02 € 1,850,000
Beneficiary Contribution Own Contribution € 17,000,000
WBIF Grant WB-IG00-MNE-ENE-01 € 25,540,000
KFW Loan € 25,000,000
Total € 129,390,000
Total Grants € 27,390,000
Total Loans € 85,000,000

Project Description

The project contributes to the establishment of a Western Balkans regional electricity market through the creation of a 400 kV transmission corridor between Montenegro, Serbia and Bosnia and Herzegovina. The corridor would be further linked to the European Union via the Italy - Montenegro submarine cable.

The investments in Montenegro comprise the construction of a new 400 kV transmission line from Lasta to Pljevlja and then to the border with Serbia, including the construction of a new substation in Lastva, the grid  connection from Lastva substation to  the existing 400kV Podgorica – Trebinje line, and the upgrade of the 400/220/110 kV substation in Pljevlja.  The project includes the cost of dismantling the existing 220 kV overhead lines between the substation in Pljevlja and the Montenegro/Serbia border.

The project has benefited from WBIF grants for technical assistance for project identification and preparation (€2.2 million) as well as for works and supplies (€25 million) under the 2015 Connectivity Agenda. Construction works are currently ongoing, with an estimated completion date set for the end of 2022. 


Ground Broken on the Trans-Balkan Electricity Corridor Section in Montenegro

Results and Benefits

  • increase of cross-border transmission of electrical energy between Montenegro and Serbia by 2.5 TWh/year in the second year of operation 
  • increase of domestic transmission of electrical energy by 3 TWh in the second year of operation
  • increase of efficiency of the transmission system in Montenegro by reduction of technical losses on the transmission level 
  • increase of the security of the power supply in Montenegro by reduction of annual average outage hours of electricity supply in substations on the transmission level in the Western coastal part of Montenegro to 47h (down from 95h)
  • Countries: Montenegro
  • Code: PRJ-MNE-ENE-001
  • Sector: Energy
  • Lead IFI: KFW
  • Status: Implementation
  • Beneficiary: Crnogorski elektroprenosni system AD
Project financing split
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Partner Financial Organisations

Western Balkans Partners