The CGES shareholders at the assembly scheduled for October 31 will consider this decision. A detailed overview of the part of the property to the company that will be stocked will be available to the shareholders with the material for the forthcoming assembly, most likely October 11th.
Electricity infrastructure is needed primarily due to the development of tourism on this peninsula.
"On the basis of the Law on the Budget of Montenegro for 2018 (Article 10, paragraph 3, point 1), CGES submitted a request for issuing a state guarantee to the Ministry of Finance, and in accordance with the same Article of this Law, as a collateral for the said loan arrangement with the German Development Bank (KFW), gave a proposal consisting of the company's 100-percent property, worth 20,018,514 euros, to which we have received the consent of this institution," CGES reported.
Based on the decision of the regular CGES Shareholders Assembly on June 26th, 2018, which approved the debt of 20 million euros for financing electricity infrastructure on Lustica peninsula, CGES, together with the German Development Bank, stated that "it has agreed on a credit agreement in the mentioned amount, at very favorable terms."
"The project for the construction of 110/35 kV substation 'Lustica' and its connection to the transmission network, is part of the adopted investment plan approved by the Energy Regulatory Agency. By realizing this project, we will gain, among other things, a significantly higher level of security and reliability of electricity supply throughout the region. The project itself will condition the development of tourism in the area of Lustica, which can bring to the conclusion that a large socio-economic profit is expected, both the state and that part of the coast," said CGES.
Text by Vijesti online, on October 7th 2018, read more at Boka news
