The Montenegro Second Energy Efficiency Project (MEEP 2) development objective is to improve energy efficiency in health sector buildings, and to develop and demonstrate a sustainable financing model.
The MEEP 2 will be implemented over five years, by the 31st of December 2023, and will be financed by an International Bank for reconstruction and Development (IBRD) loan of €6 million to Montenegro and contra-part funding (from captured energy cost savings and in kind contribution of the Government of Montenegro).
The preparation and implementation of the energy efficiency investments for buildings will be done under IBRD loan proceeds and from 2021 until closing of the MEEP 2 in the form of a joint co-financing arrangement between captured energy cost savings and IBRD loan proceeds.
According to the environmental impact assessment, the Project is ranked in Category B, in line with the World Bank safety policy on Environmental Impact Assessment (EA, OP 4.01). It has been confirmed that there will be no confiscation of land, displacement of population, or endangering the security of any facility that would be incompatible with the World Bank security policy. The Environmental and Social Management Framework (ESMF) for the Project is prepared and it can be downloaded here.
The MEEP 2 consists of three components:
Component 1 – Energy Efficiency (EE) investments in health sector buildings. This component will support:
- EE investments in selected health sector buildings, for which achieved energy cost savings will be captured and reinvested using an energy savings capture model,Related technical services, including energy audits, designs, technical revision, works supervision, technical and social monitoring before and after the EE building renovations, and issuance of energy performance certificates for all retrofitted facilities, and Installation of energy consumption monitoring equipment in health buildings.These investments will reduce energy consumption and associated CO2 emissions, help lower recurrent energy expenditures, and improve comfort levels in the retrofitted health sector facilities.For more about component 1 click here.
Component 2 – Technical assistance. This component will finance activities:
- to enhance local EE capacity related to:
- The development of a long-term sustainable EE investment framework. Technical assistance will be provided to support the development of an EE investment and implementation framework that would allow to sustain and scale-up EE improvements beyond the project;
- Capacity building activities: EE capacity building activities would be provided on an as-needed basis to key project stakeholders, including local energy service providers (e.g. energy audit, design, construction and building certification companies), energy managers of retrofitted facilities, Government representatives, and other key stakeholders. Targeted support is expected to include training and technical assistance related to the issuance of building certificates, M&V of achieved energy and cost savings, improved operational and maintenance practices in retrofitted facilities, and/or other EE capacity building aspects.
- Communication and awareness activities: The project will support communication and public outreach activities to help enhance EE awareness by showcasing EE benefits (e.g. through promotion and dissemination of results achieved under MEEP2) and supporting information activities on how to improve EE, including through behavior changes. The activities would be conducted in a gender-sensitive manner.
Component 3 – Project implementation support.
- The component will support the effective implementation and management of the project and its reflows from captured energy cost savings, including:
- Project Implementation Unit and Government’s Technical Service Unit (TSU) responsible for procurement and financial management functions;
- Project-related operating costs and financial audits.