By the year 2040, Montenegro aims to achieve the EU average in citizens’ wages, purchasing power, and quality of life. This ambition is outlined in the recently approved Spatial Plan for Montenegro until 2040 by the Government.

The plan emphasizes sustainable high-paying tourism development while safeguarding the coastal areas from residential construction. Additionally, it involves the advancement of mining, the processing industry, energy sector, and agriculture to ensure self-sufficiency in producing fruits, vegetables, dairy, and meat products.

Currently, the average salary in Montenegro stands at one thousand euros, compared to the EU average of approximately two and a half thousand euros. The GDP per capita in Montenegro is 11 thousand euros, which is half of the EU’s average. Montenegrin citizens’ purchasing power is about 50 percent of that in the EU.

“Major economic growth is anticipated, mainly propelled by large infrastructure projects with positive multiplier effects, focusing on domestic resources, especially in tourism. While positive trends are predicted in various sectors, the primary growth drivers will be transport, energy, tourism, and agriculture,” the Spatial Plan articulates.

Coastal Development Restrictions

The plan proposes the construction of various highways and expressways, including Bar-Boljare, Adriatic-Ionian, a branch connecting Podgorica to Shkodra, plus routes from Andrijevica to Rožaje and Peć, coastal expressways, and further connectivity from Podgorica to Nikšić and Šćepan Polje, as well as routes from Bijelo Polje and Pljevlja to Bosnia and Herzegovina.

The draft recommends that municipal planning documents restrict housing development within one thousand meters of the shoreline, establishing this area for exclusive construction of luxury four- and five-star hotels. The objective is to boost the number of tourists from the current 2.6 million to three million by 2040, alongside increasing overnight stays from 15 million to 20 million.

Energy Needs by 2040

The energy aspect of the Plan suggests that Montenegro will require an additional 2,000 gigawatt hours annually from renewable sources by 2040 to support residential and tourism expansions and industrial development. This means a rise in energy production from the existing 3,400 gigawatt hours to 5,400 gigawatt hours, which must account for the potential closure of the Pljevlja thermal power plant post-2040.

New gigawatts are expected to come from increased output from solar and wind farms. However, since these are intermittent sources (dependent on sunlight and wind), the stability of the energy grid will necessitate integration with stable producers like hydroelectric plants and battery systems. Urban planning and technical conditions have already been established for 38 large solar farms and seven wind farms.

Hydropower plants “Komarnica” and “Kruševo,” for which project documentation is underway, are essential for future energy grid stability. Proposed energy connections between Slano and Krupac lakes, alongside ongoing studies for harnessing the Ćehotina, Morača rivers, and the Montenegrin segment of Lake Bileć, are noted. Three gas plants are planned near the Port of Bar, at the Aluminum Plant in Podgorica, and in Pljevlja, depending on future gas supplies.

Although current oil and gas explorations in Montenegro’s seabed show little promise, efforts will persist since discovering domestic energy resources could present a significant developmental opportunity.

Brskovo’s Importance in the Plan

The Plan acknowledges that mining could significantly boost the economy, urging companies towards modernization and better processing of mineral resources.

“What is currently unprofitable extraction of some mineral deposits could become viable and highly advantageous in the future due to rising demand and advances in mining technology. Thus, it’s crucial to safeguard areas with discovered mineral resources as well as those promising for further geological inquiries,” the Plan mandates.

Despite the previous termination of a concession contract for the lead and zinc mine on the Mojkovac side of Bjelasica due to environmental concerns and local protests, the site remains included in the Plan.

In the Bjelasica mining region, substantial geological research has affirmed the presence of economic reserves at deposits: Brskovo, Razvršje, Žuta prla, Višnjica, and Igrišta. Given the political, social, and ecological uncertainties, and restrictions posed by the proximity to the environmentally sensitive Tara River and national parks, the future research of these mineral occurrences is crucial, as noted in the Plan.

Agricultural Growth Targeted at 40% Increase

There’s a planned increase of at least 35% in arable agricultural land, aiming for a 40% rise in agricultural production’s volume and value. This will be pursued through safeguarding existing agricultural land from further development and enhancing infrastructure in rural areas. The goal is to improve self-sufficiency in food production while diminishing reliance on imports, particularly in fruits, vegetables, dairy, and meat sectors.

The need for economic diversification is emphasized to avoid dependency solely on tourism, hence the plan aims to strengthen, or rather revitalize, the processing industry—especially in food, wood, metal, and pharmaceuticals.

Brief Note on Velje Brdo

The “Velje Brdo” project, planned as a new residential settlement for 40,000 inhabitants, is concisely addressed in the Spatial Plan, with the indication that specifics will be elaborated upon in lower-level municipal plans.

“During the development of the PPCG-2040, Montenegro’s Government initiated an initiative to establish a residential settlement in the Velje Brdo area for providing affordable housing, under state-level oversight. Details regarding spatial capacity, necessary infrastructure, and area protection will be determined in more detailed planning phases, as the project is regarded as a public interest initiative,” the Plan explains.

Demographic projections show that Podgorica (excluding Zeta and Tuzi) has a population of 183,790 today, with expectations of reaching 199,040 by 2040. These projections are utilized for planning Podgorica’s infrastructure and needs over the upcoming 15 years.

Contrasting Views on Velika Plaza Development

The Velika Plaza area, where the Government plans a massive tourism and residential project, costing 30 billion euros in collaboration with an investor from the UAE, presents conflicting perspectives in the Plan.

The tourism section states that “Velika Plaza remains the greatest potential for developing an exclusive tourist complex at state, regional, and community levels.”

“Future tourism development must be integrally planned in more detailed planning stages. Implementation is feasible in phases as defined in the planning documentation, with due consideration for natural constraints tied to area protection and seismic risks,” the Plan notes.

Simultaneously, Velika Plaza is recognized as a protected natural monument and a candidate for the internationally recognized EMERALD area, suggesting protection could extend to “12 kilometers of beach and a 1,000-meter hinterland,” categorizing it among 32 sites in Montenegro identified as “areas of special interest for European-level protection.”

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