Montenegro has secured a loan from a London-based bank to build a new power transmission line that will link the nation to Italy.
The €60 million (£50.7m) loan will be used to finance an undersea interconnection and a new substation, which will help strengthen the existing high voltage network near the Adriatic Coast (pictured).
The interconnection is expected to support the development of a local and regional electricity market in the country and connect neighbouring power systems which will increase the capacity for cross-border electricity trade in the region.
Riccardo Puliti, Managing Director Energy and Natural Resources at the European Bank for Reconstruction and Development (EBRD) said: “This investment represents a major step forward and has the potential to fundamentally transform the power sector of Montenegro and the wider Balkans region. It will support the development of the regional electricity market in South Eastern Europe by creating the required infrastructure for an exchange between the region and Italy.”
EBRD has invested more than €330 million (£278.8m) in Montenegro to date.