The EU and EBRD have signed a Reform Facility agreement worth €2.5 million to help Montenegro with energy security, investment climate and corporate governance of state-owned enterprises.

The EBRD will support enhancing the regulatory framework promoting renewable energy and the integration of Montenegro’s power market into the EU and regional power markets. This action is instrumental for the green transition and the EU integration of Montenegro. The EBRD will also promote higher efficiency and good governance in state-owned enterprises.

The EU Ambassador to Montenegro, Oana Cristina Popa, reconfirmed strong support for Montenegro's accession and the EU’s strong commitment to help Montenegro pursue outstanding reforms.

"Reforms are crucial to unlock Montenegro’s growth potential, for which energy security and green transition are key. Together with the reforms from the Growth Plan, we hope to give a strong boost to Montenegrin economy, which will ultimately benefit the standard of living for the citizens," said Popa.

The Head of the EBRD Office for Montenegro, Remon Zakaria, said that EBRD is pleased to partner with the European Union to support Montenegro in advancing and implementing critical reforms in the energy sector and the corporate governance of state-owned enterprises (SoEs).

”This facility is designed to help Montenegro achieve these goals, ensuring sustained policy and economic reforms that will drive long-term prosperity and EU integration. We believe that Montenegro will make significant strides in reforming the energy sector,   ultimately creating a more robust and attractive environment for investors” said Remon Zakaria, the Head of the EBRD Office for Montenegro”, said Zakaria.

Minister of Energy and Mining, Saša Mujović said that his Ministry has an excellent cooperation with the EU Delegation, which closely monitors and supports the implementation of the energy transition in Montenegro.

“One of the examples of this is the financial and technical support they provide us continuously, through various programs, in order to implement the reforms in a high-quality manner and in accordance with the stipulated deadlines, which will ultimately have a positive effect on meeting the closing benchmarks from chapter 15. As a signatory of this agreement, the European Bank for Reconstruction and Development has once again proven itself as our reliable partner when it comes to key energy projects. This agreement will mean continued cooperation regarding the implementation of the Law on the Use of Energy from Renewable Sources, regarding the launching of the first auctions, which are preceded by a six-month preparation in which joint teams of consultants and representatives of the Ministry of Energy and Mining will participate. In addition to the auctions, through this program, the EBRD will provide experts for the needs of electricity market coupling, and we believe that their contribution will be of great help for the preparation of all regulations that will be in accordance with the standards of the European Union", said Mujović.

The Minister for European Affairs, Maida Gorčević, stressed the importance of the EU Reform Facility, as an instrument designed to support the implementation of key reforms related to the EU accession process. Expertise provided by EBRD colleagues, besides the needs related to EU Growth plan reforms, will be appreciated also in the context of the accelerated process of accession negotiations.

“I am sure that part of the negotiating structure dealing with Chapter 15 (Energy) will benefit significantly from this additional support, aimed to ensure alignment of our energy policy and standards with those of EU member states," emphasized Gorčević.

In 2023, Montenegro and the EU started to implement a Reform Facility with an initial €10 million grant from the EU budget. The Reform Facility aims to provide technical expertise and transfer knowledge to Montenegro for critical, structural reforms of the economy. The Reform Facility is also providing a platform for joint and coordinated work between Montenegro and key international partners to unlock growth potential. Apart from the EBRD, other partners to date include the World Bank and the UN family.