The European Bank for Reconstruction and Development (EBRD) invested €104 million in Montenegro last year through nine significant projects that contribute to the country’s economic and sustainable development, according to a statement from the international financial organization.
EBRD officials stated that €92 million, or a record 89% of total investments, was allocated to green projects supporting energy efficiency, renewable energy sources, and decarbonization efforts.
“Additionally, seven out of nine projects included gender inclusion. These investments reflect the bank’s commitment to Montenegro’s transition toward a greener, more resilient, and inclusive economy,” the EBRD said in the statement.
EBRD Director for Montenegro, Remon Zakaria, said that the bank is pleased to have advanced the country’s green transition, modernized infrastructure, and expanded access to financing for businesses and individuals, demonstrating its commitment to sustainable economic development.
“These achievements highlight the strong partnerships we have established with local stakeholders, donors, and the private sector. I look forward to this year with optimism, confident in our ability to maintain this progress, achieve even greater results, and help Montenegro realize its full potential,” Zakaria said.
EBRD supported Montenegro’s economic and sustainable development last year through several key projects.
“Notable projects include two energy efficiency initiatives in public buildings totaling €32 million, signed with the Ministries of Education, Science, and Innovation, and Health. These projects are focused on renovating 24 schools and three hospitals. There was also a €28 million loan for the upgrade of the Brezna substation, which will enable the integration of over 400 MW of new renewable energy capacity into the grid,” EBRD representatives said.
They also mentioned a €30 million loan to Željeznički Prevoz (ŽPCG) for the purchase of three new trains, replacing outdated equipment, confirming their commitment to improving infrastructure and the quality, comfort, and reliability of transport services.
“By signing four credit lines worth a total of €12 million with three partner banks—NLB, Hipotekarna, and Alter Modus—we targeted green investments, as well as gender and economic inclusion,” the EBRD said.
Through the Small and Medium-Sized Enterprises Advisory Program, the EBRD supported 29 such companies to improve their competitiveness and business practices through tailored advisory solutions, which was a significant achievement in the past year. Additionally, the Competitiveness Council Secretariat, supported by the EBRD, continued facilitating public-private dialogue to improve the business environment.
“Last year, activities in policy creation achieved significant milestones in enhancing renewable energy sources and energy security. The adoption of the renewable energy law in August, with technical support from the EBRD, marked a decisive step toward creating a favorable environment for investments in renewable energy. These efforts were complemented by the launch of the second phase of the technical cooperation (TC) project, aimed at helping Montenegro implement international auctions for renewable energy sources,” the statement said.
An agreement for a €2.5 million reform fund was signed with the EU to support Montenegro’s progress in energy security, investment climate, and corporate governance of state-owned enterprises.
“Last year, strong cooperation with international financial institutions (IFIs) and international donors proved crucial, as joint initiatives led to significant reforms, stimulated innovation, and improved key projects in energy, governance, and investment climate,” said EBRD representatives.
EBRD invested €1.6 billion in the Western Balkans last year, with a record additional half a billion mobilized from other investors through 116 projects. A record 62% of total investments were dedicated to green projects, and 50% of all projects included gender inclusion.
EBRD achieved a record €16.6 billion in investments last year across its economies, marking a 26% increase from the previous year.
EBRD representatives also noted that last year saw the addition of its first two shareholders from Sub-Saharan Africa, Benin and Côte d’Ivoire, raising the total number of members to 76. The bank plans to begin operations in that region this year.
The year was also marked by the presidential election session, where governors re-elected Odile Reno-Baso for a second term as president at the Annual Meeting and Business Forum in Yerevan.
Since its inception, EBRD has invested over €908 million in Montenegro through 95 projects.
