Client:  Kreditanstalt für Wiederaufbau (KfW)

Dates: 2007 - 2008

Country of assignment: Montenegro

Description of actual services provided:

In January 2007, Encon was awarded a KfW project in Montenegro - the Renewable Energies and Energy Efficiency (RE-EE) Facility to finance public and private renewable energy and energy efficiency projects through a credit line established with Crnogorska Komercijalna Banka AD (CKB) as a partner bank in Montenegro.


Encon successfully implemented the following tasks:

·       Selection of partner bank(s)

·       Creation of a catalogue of renewable energies and energy efficiency investment options

·       Development of a project pipeline

·       Technical and economic assessment of investments

·       Preparation of bankable documents and elaboration of project proposals

·       Supervision of implementation activities and assistance during commissioning of investments

·       Market development

·       Facility marketing and awareness activities

·       Assistance and training measures for Partner Banks’ personnel, and

·       Supporting the Partner Bank(s) in the development of a marketing strategy

Encon formed and trained a team of local full-time and part-time engineering and financial experts in Montenegro and by December 28, 2008 implemented all tasks of the ToR. Encon developed and submitted to CKB 12 bankable renewable energy (a solar project at Grand Hotel in Cetinje, a biomass boiler project at the Wood Processing Factory Duga) and energy efficiency projects for financing under the KfW RE-EE Facility. These projects requested total financing from CKB under the RE-EE Facility in the amount of EUR 2,507,310 or 100.3% of the total loan portfolio of EUR 2,500,000. As of December 2008 nine projects were approved for financing by CKB, and other projects were under the bank’s review. Total estimated debt financing requested by all projects in the project pipeline developed by Encon in cooperation with CKB, including developed projects, projects under development, and projects in the stage of clarification of technical measures and financing schemes, amounted to EUR 8,235,862 million exceeding the RE-EE Facility portfolio of EUR 2.5 million by 3.3 times.