EIB injects funds into UK transmission grid

The European Investment Bank is lending £360m to the UK’s National Grid to help upgrade its gas distribution networks. In separate news, it is also guaranteeing €100m of finance which will go towards Montenegrin infrastructure projects.

The European Investment Bank (EIB) has agreed to lend £360 million (€420 million; $588 million) to the UK’s National Grid in order to help the company upgrade and extend its gas distribution networks.

The loan is intended to boost the security and reliability of the network, which serves over 11 million customers in England across a 132,000 km pipeline network.

The loan forms part of an investment programme which is expected to continue until March 2011.

The EIB also revealed yesterday that it has signed an agreement to benefit infrastructure projects in Montenegro.

The bank has signed a guarantee covering finance contracts with banks in the country for €100 million. The loan is intended to target infrastructure projects promoted by local authorities in Montenegro, in addition to small and medium-sized enterprises in the country.