Projects presented at the EU-Montenegro AIM 2026 conference must progress through technical, legal, environmental and commercial requirements before lenders can release construction financing. The period between signing a memorandum of understanding (MoU) and the first debt drawdown can span several years, during which projects may encounter delays, additional capital requirements or a loss of investor support.
The initial stage involves defining the project’s physical scope, ownership structure, land position, development rights and technical parameters. For energy investments, this includes resource assessments, generation layouts, substation and transmission-line concepts, grid studies and preliminary requirements for storage or balancing capacity.
Transport and logistics developments require a different set of assessments, covering route selection, infrastructure interfaces, geotechnical risks, traffic assumptions, land acquisition and environmental constraints. Feasibility studies must establish a consistent technical and financial basis for investment. Cost estimates need to be supported by measurable quantities and market-tested rates, while construction programmes must account for realistic procurement lead times.
Environmental and social assessments must identify requirements that could affect project design or delay permits. Revenue forecasts also need to be supported by contracts, tariffs, market studies or defensible merchant-market scenarios. The financial model and engineering programme must use compatible assumptions, particularly regarding the expected commissioning date.
Procurement and contractor responsibilities
Procurement represents another stage at which project readiness can determine whether financing proceeds. Even technically attractive developments may remain difficult to finance when contractual responsibilities between contractors are insufficiently defined.
Renewable energy projects can divide engineering, procurement and construction (EPC) responsibilities among turbine or module suppliers, civil works contractors, substations, grid transmission lines, supervisory control and data acquisition (SCADA), power plant controllers (PPC) and balance-of-plant packages.
These arrangements create interfaces between contractors, with the potential for one package to be completed while another delays energisation. Lenders therefore examine liquidated damages, performance guarantees, parent-company support, warranty provisions, interface responsibilities and the sponsor’s capacity to finance cost overruns.
Permits, grid access and financing conditions
Permitting and grid access also influence whether projects can proceed to construction financing. Developments dependent on future grid reinforcement carry different risks from those able to transmit electricity through the existing network. Similarly, transport projects with unresolved land expropriation issues face different scheduling requirements from those with land already secured.
Such constraints require engineering, administrative and contractual solutions before the conditions for debt drawdown can be met. A financing commitment alone does not resolve outstanding infrastructure or land-access requirements.
Once the technical basis has stabilised, lenders can finalise the debt structure and assess the project’s capacity to meet its obligations. Their reviews cover capital expenditure (CAPEX), contingency allowances, cost to complete, debt sizing, reserve accounts, downside generation or traffic scenarios, insurance, environmental compliance and completion tests.
Independent technical advisers and Owner’s Engineers play a central role in this process by assessing actual site conditions and providing lenders with the technical information needed to determine whether capital can be released. For Montenegro’s AIM investment pipeline, progress will be measured through verifiable milestones, including completed feasibility studies, permits, procurement, financing and the notice to proceed. The transition from development capital to construction capital depends on projects demonstrating that these requirements have been met, rather than relying solely on the continued visibility of memoranda of understanding.
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