July 2 (SeeNews) - Montenegro's finance ministry said on Monday it signed an agreement to receive a 6 million euro ($7 million) loan from the World Bank for energy efficiency projects.
The loan will be used to finance the Montenegro Energy Efficiency Project 2 (MEEP2), which will support energy efficiency investments and related technical services in 18 public health sector buildings, the finance ministry said in an emailed statement.
The loan, which should be repaid in 15 years, has a five-year grace period, as its interest rate will be equal to six-month Euribor plus up to 0.85 of a percentage point, the ministry said.
"Bearing in mind the scope of the project and the geographical distribution of selected facilities, it is estimated that about 220,000 patients and 2,000 staff members will benefit from the project," the World Bank country head for Montenegro, Emanuel Salinas, said in the statement.
The MEEP2 project will be carried out until 2023. In addition to energy efficiency improvements in public health sector buildings, it will support the development of sustainable financing models and strengthening of the energy efficiency market capacity.
Under MEEP1, the International Bank for Reconstruction and Development (IBRD) provided 11.5 million euro financing for the implementation of energy efficiency projects in 25 public buildings, 16 health and 9 educational facilities.
($ = 0.8586 euro)