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Vujacic Advises EBRD and KFW Ipex-Bank on Montenegrin Wind Farm Financing

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The Vujacic law office has advised in the due diligence of the EBRD and KFW Ipex-Bank in connection with a project financing of a wind farm in Krnovo, Montenegro, as well as assisting in the drafting and negotiation of security documents. The Krnovo wind firm is operated by Akuo Energy, and is the first wholly private wind farm in the country. The firm reports a deal value of EUR 98 million.

In July the EBRD reported that it would be extending a senior secured loan of up to EUR 48.5 million to Krnovo Green Energy d.o.o, the subsidiary of Akuo Energy, which will build and operate the 72MW plant. The EBRD also reported at the time that, in parallel with its loan, KfW IPEX-Bank GmbH, a subsidiary of KfW, would be providing a loan of the same amount.

The EBRD also described the project as "the first large-scale investment in Montenegro’s electricity generation capacity since the 1980s,” and said that, once constructed and operational, the wind farm "will represent 8 per cent of the total installed capacity and 6 per cent of total electricity production in Montenegro.” The project is expected to result in CO2 emission reductions of more than 180,000 TCO2 annually, equivalent to removing 11,000 cars from the roads.

Vujacic did not reply to a request for additional information.