The Agency for the Protection of Competition assessed that the Government’s guarantee to a state-owned company is not state aid
The Agency for the Protection of Competition (AZK) has given the green light for the issuance of a state guarantee for 28 million euros to the Montenegrin Electric Transmission System (CGES), which is a pledge for a loan from the European Bank for Reconstruction and Development (EBRD) with which this state-owned company will finance the construction substations 400/110 kV TS Brezna.
“Issuing a state guarantee does not constitute state aid”, is the opinion of AZK.
The Ministry of Energy and Mining submitted this request to the Agency at the end of April for assessment of whether the guarantee is state aid.
In the decision of AZK, the ministry states in its request that CGES is a large company, that it has 334 employees, the annual turnover in 2023 was 108.360.581 euros, and that the total annual balance in the same period was 35.717.703 euros.
It is also stated that this company is not in difficulties, that guarantees of 28 million euros are issued for regional development, and that there is no cumulation of this measure with any other aid to cover the same justified costs, Vijesti reports.
