Early Warning System

Countries

Montenegro

Geographic location where the impacts of the investment may be experienced.

Specific Location

Podgorica; Cetinje; and Bijelo Polje

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Jun 12, 2024

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Government of Montenegro - Ministry of Health

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Education and Health
Infrastructure

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 13.03 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 12
Converted using 2024-04-09 exchange rate.

Project Cost (USD)

$ 16.40 million

Primary Source

Original disclosure @ EBRD website

Updated in EWS May 3, 2024

Disclosed by Bank Apr 9, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of EUR 12 million to finance implementation of various energy efficiency measures and potentially renewable energy technology (solar photovoltaic) in three public hospital buildings: (i) the Clinical Centre in Podgorica; (ii) a hospital in Cetinje; and (iii) a hospital in Bijelo Polje.

The Project will improve energy performance and environmental sustainability of the renovated hospitals, improve damaged structures and air quality, as well as comfort level, which are very important for buildings of this nature.

The Project will contribute to reduction of GHG emissions and energy consumption, yielding electricity and heating savings. Additionally, achievement of higher standards of heating, cooling and ventilation will result in improved thermal comfort for the users of three hospitals:

Clinical Centre of Montenegro in Podgorica i 23,278sqm, which is the largest and most important hospital in Montenegro.Hospital in Bijelo Polje i 15,000sqm, andHospital in Cetinje i 4,194sqm

Clinical Centre of Montenegro in Podgorica i 23,278sqm, which is the largest and most important hospital in Montenegro.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B in line with 2019 ESP.

The project will not require any additional land acquisition and all construction works will be taking place within the footprint of the existing sites. The project will not have impacts on any sensitive areas or protected sites. All three hospitals plan to continue providing health services during construction works, and no interruption of hospital services is expected. The patients/staff will be relocated safely and temporarily within the existing hospital facilities for the limited time of the construction works.

Potential E&S impacts and risks will be commonly associated with the construction phase, including dust and noise generation, increased traffic and nuisance. The main receptors of these impacts will be hospital users.

ESDD confirmed that any impacts and risks are temporary, site-specific and can be effectively avoided, reduced or remedied through the implementation of mitigation measures outlined in the Project's ESMP and ESAP.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

SOURCES TOTAL: EUR 15.1 mln

EBRD Financing: EUR 12.0 mln

Capex: EUR 13.88 mln

REEP: EUR 2.0 mln

Front-end fee: EUR 0.12 mln

TC funds: EUR 1.1 mln

TC: EUR 1.1 mln

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Client or the Beneficiary of the loan is the Government of Montenegro - Ministry of Health ("MoH"), which has overall responsibility for the healthcare policy, strategic decisions in health system, maintenance and (re)construction of public hospital buildings and capital investments. In 2023, MoH together with the State Health Insurance Fund ("SHIF") had an operational budget of EUR 391 mln or 16% of the total country's expenditures. Draft Budget Law for 2024 provides EUR 430 mln for regular operations of the public health system.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Amra Pepic
amra.pepic@mzd.gov.me
+382 20 482 328
+382 69 854 485
www.mzd.gov.me
Ministry of Health, Rimski trg 46, Podgorica Montenegro

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html