€104 Million Invested in Improving Public Buildings under the Regional Energy Efficiency Programme
Public buildings in Montenegro, primarily schools and hospitals, as well as a large number of households, are undergoing modernisation thanks to investments exceeding €100 million. The loan and grant funding are provided by the European Union (EU), the German Development Bank (KfW) and the European Bank for Reconstruction and Development (EBRD) through the Regional Energy Efficiency Programme (REEP), which helps Western Balkan countries improve the energy efficiency of their buildings and align their legislation with the EU acquis.
At an event held at the Europe House in Podgorica, representatives of the EU, the Government of Montenegro, KfW and the EBRD presented the latest results and the impact of the REEP programme on Montenegro’s infrastructure and green transition.
With €104 million secured for energy efficiency improvement projects – including €12.6 million in EU and donor grants and €82 million in loans from the EBRD and KfW – REEP is driving tangible improvements in Montenegro’s education, health and residential sectors. Energy-efficient reconstruction of the Clinical Centre in Podgorica and 46 schools is underway. At the same time, 180 households have already had the opportunity to introduce innovations with long-term positive effects on health and living comfort. These efforts are expected to save 48,722 MWh of energy annually and reduce CO₂ emissions by 13,429 tonnes.
Ekaterina Bakalova, Programme Manager at the European Commission (Western Balkans Investment Framework), emphasised: “The EU is Montenegro’s largest investor and strategic partner, supporting its EU accession process with comprehensive financial and technical assistance. REEP is an example of how the EU, KfW, the EBRD and the Government of Montenegro foster sustainable large-scale investments. Every renovated school and hospital improves the quality of life. One of the pillars of the EU Growth Plan is strengthening economic integration with the EU Single Market, where the integration and decarbonisation of energy markets are key priorities.”
In addition to financing, REEP provides technical assistance for legislative work and capacity building, enabling Montenegro to adopt strategic documents and regulations aligned with the EU Green Deal and the objectives of the Energy Community.
Admir Šahmanović, Montenegro’s Minister of Energy and Mining, stated: “The REEP programme has helped us align our energy efficiency legislation with EU directives, raising standards and quality in the construction sector. To date, seven schools in Nikšić, Kotor, Tuzi, Bar and Cetinje have been fully renovated, improving conditions for pupils and staff. This programme enhances quality of life, with sustainability as its guiding principle. I would like to extend my thanks to all partners for their support.”
Pablo Obrador Alvarez, Head of the Energy Division for South-Eastern Europe and Türkiye at KfW, noted: “Our energy efficiency programme for public buildings in Montenegro is worth €60 million and covers 19 schools, one nursing home, one administrative building and the country’s first nearly zero-energy building.” Many buildings, some dating back to the 1930s, have been renovated to address issues such as outdated heating systems, poor insulation, and inadequate air quality, significantly improving conditions for students and employees.
In the healthcare sector, the EBRD is financing the energy rehabilitation of three major hospitals: the Clinical Centre Podgorica and facilities in Cetinje and Bijelo Polje. In addition to hospitals, the EBRD is funding the refurbishment of 24 schools. In cooperation with partner banks, the EBRD is also providing financing for households for the energy renovation of individual homes.
Remon Zakaria, Head of the EBRD Office for Montenegro, added: “We are proud to stand with the Government of Montenegro in delivering projects that make a real difference in people’s lives. Through our partnership with the European Union under the Regional Energy Efficiency Programme, we are investing in improving energy efficiency in 24 schools and modernising 3 hospitals across the country. These upgrades will create better learning environments for thousands of students and safer, more modern facilities for patients and medical staff, while reducing the risk of airborne contamination. In addition to public buildings, under the REEP programme, we are advancing policy reforms and enabling households to improve energy efficiency through dedicated credit lines with our partner banks – NLB, CKB and Erste Bank. These efforts reflect our commitment to sustainability and a higher standard of living for all citizens of Montenegro.”
Launched in 2012 under the Western Balkans Investment Framework, REEP combines EBRD and KfW financing with EU and other donor grants for investments, technical assistance and reforms. To date, more than €1.1 billion has been mobilised through the programme at the regional level. The total EU contribution to WBIF REEP amounts to €276.5 million, including an additional €90 million in 2025, to sustain and further accelerate the Western Balkans’ green transition momentum.