Loan agreements with KfW on boosting energy efficiency in public buildings signed

Podgorica, Montenegro (12 December 2014) -- Montenegro's economy and finance ministers Vladimir Kavarić and Radoje Žugić signed earlier today three agreements with Regional Director of the German Development Bank (KfW) Jörg Meilick on the implementation of the Programme of energy efficiency in public buildings - Phase II.

Finance Minister Žugić and Mr Meilicke signed a loan agreement amounting to EUR 20 million and a donation agreement worth EUR 2 million, while Minister Kavarić and a KfW representative signed a special agreement on the implementation of energy efficiency in public buildings - Phase II totaling EUR 20 million and a financial contribution (donation) of EUR 2,093,135.76.

Minister Žugić said the KfW bank has offered the loan on very favorable terms.

"In addition to 3% interest rate, 3-year grace period and 13-year payback period, we also have provided a donation worth EUR 2 million, which makes the loan favourable," said Minister Žugić.

The second phase of the programme will cover 28 educational institutions under the Ministry of Education, 5 facilities under the Ministry of Labour and Social Welfare and 6 administrative facilities within the competence of the Property Administration. The implementation of the programme starts on January 2015, and its completion is scheduled for December 2020.

The goal of the programme is to contribute to boosting energy efficiency in public buildings, ensure sustainability of facilities and improve living and working conditions within the buildings.