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Montenegro and Italy sign pivotal agreement on con...
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Montenegro and Italy sign pivotal agreement on construction of submarine power cable
Published on: Nov 24, 2010 • 1:48 AM Author: Bureau
The Montenegrin Transmission System (CGES) signed today the final agreement on strategic partnership with Italian “Terna” S.p.A on the construction of submarine power cable between Montenegro and Italy across the Adriatic.
The “electricity bridge” between Italy and the Balkans, as Terna calls it, will enable the production and export/import of green energy, the establishment of a more reliable electricity grid, direct access for Montenegro to the EU energy market, creating incentive signals for further investment in energy production, positioning of Montenegro as an energy hub in the region, positive effect on the value of CGES shares, and faster development. In addition, the project will contribute to increased employment, growth in construction and transport industries, positive trends in capital and real-estate markets, improved macro-economic and fiscal indicators, and an increase in public income.
The value of the project is estimated at EUR 760 million invested by the Italian partner Terna and EUR 100 million invested by the CGES, with the Government of Montenegro retaining 55%, and “Terna” 22% of the shares.
In addition to the building of the submarine power cable between Montenegro and Italy by Terna (capacity of 1,000 MW), plus the internal infrastructure for the Montenegrin grid by CGES, the Project envisages additional grid infrastructure in the form of a 400kV interconnection cable between Montenegro and Bosnia and Herzegovina and/or an additional 400 kV cable between Montenegro and Serbia, which would further enhance the growing regional cooperation in this area.
The interconnection cable between Montenegro and Italy will be 450 km long, 375 km of which will connect both sides of the Adriatic along the seabed, while some 75 km will be on the land.
At the press conference after signing the agreement Economy Ministers of Montenegro Branko Vujovic and of Italy Paolo Romani stressed the fact that Montenegro and Italy have excellent bilateral relations and pledged to do their best to make them even better. In this regard they announced further cooperation in other spheres of economy, most notably tourism, transportation and trade.
The “electricity bridge” between Italy and the Balkans, as Terna calls it, will enable the production and export/import of green energy, the establishment of a more reliable electricity grid, direct access for Montenegro to the EU energy market, creating incentive signals for further investment in energy production, positioning of Montenegro as an energy hub in the region, positive effect on the value of CGES shares, and faster development. In addition, the project will contribute to increased employment, growth in construction and transport industries, positive trends in capital and real-estate markets, improved macro-economic and fiscal indicators, and an increase in public income.
The value of the project is estimated at EUR 760 million invested by the Italian partner Terna and EUR 100 million invested by the CGES, with the Government of Montenegro retaining 55%, and “Terna” 22% of the shares.
In addition to the building of the submarine power cable between Montenegro and Italy by Terna (capacity of 1,000 MW), plus the internal infrastructure for the Montenegrin grid by CGES, the Project envisages additional grid infrastructure in the form of a 400kV interconnection cable between Montenegro and Bosnia and Herzegovina and/or an additional 400 kV cable between Montenegro and Serbia, which would further enhance the growing regional cooperation in this area.
The interconnection cable between Montenegro and Italy will be 450 km long, 375 km of which will connect both sides of the Adriatic along the seabed, while some 75 km will be on the land.
At the press conference after signing the agreement Economy Ministers of Montenegro Branko Vujovic and of Italy Paolo Romani stressed the fact that Montenegro and Italy have excellent bilateral relations and pledged to do their best to make them even better. In this regard they announced further cooperation in other spheres of economy, most notably tourism, transportation and trade.
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