Today, the Operational Board of the WestBalkan Investment Framework approved six grants for environmental protection and energy in Montenegro, at a meeting held in London, totaling 75 million euros.

This support package includes five investment grants aimed at infrastructure projects in environmental assistance, along with a technical assistance project for developing energy documentation in Montenegro.

“The total financial commitment for these six investments, which includes national co-financing and favorable loans, will reach EUR 171.5 million. By executing these vital projects, we will enhance wastewater supply and treatment systems across Montenegro, including in Tivat, Ulcinj, Cetinje, Nikšić, and Pljevlja,” said Minister Maida Gorcevic.

Montenegro stands to gain significantly from these initiatives. The modernization and expansion of water infrastructure will not only bolster public health but also enhance the quality of life for its citizens.

“Furthermore, ensuring a reliable water supply and effective wastewater management is crucial for the tourism sector, especially in popular destinations, thereby positively influencing this sensitive economic sector. Beyond infrastructure, Montenegro is also expected to receive millions in incentives for energy projects,” Gorcevic added.

In addition to their tangible benefits, these projects will play a crucial role in shaping Montenegro’s obligations during its EU accession negotiations.

“While we strive to foster growth for the Western Balkans, these projects supported by the WBIF will positively influence the negotiations in Chapter 27 – Environment,” stated Gorcevic.

She also noted that gaining support last week was a significant milestone for Montenegro on its path to European integration, alongside the commitment to strive for EU membership by 2028.

During the 10th Investment Calls at the Operations Board meeting of the WestBalkan Investment Framework (WBIF) in London, the following projects were approved:

1. Improvement of wastewater collection systems in the municipalities of Nikšić and Pljevlja, with a proposed EU grant of 17.8 million euros;

1. The project encompasses the construction of the II Sewerage Network, in addition to the II phase of the sewerage network, ensuring optimal conditions for wastewater treatment in these municipalities and increasing the population equivalent served by the purification plant. The total project value is EUR 31.5 million, including European Investment Bank contributions of 6 million euros, EU project documentation support of 950,000 euros, with the remainder representing national co-financing.

2. Enhancement of the water supply system in Cetinje, with a proposed EU grant of 12.6 million euros;

This project focuses on upgrading the water supply network in the capital city of Cetinje by reconstructing existing systems and establishing a new water supply network, along with new pumping stations for efficient delivery of drinking water to users. The total project value is EUR 21.2 million, which includes EU grant funding of 12.6 million euros, a 4 million euro loan from the European Investment Bank, and project documentation support of approximately 500,000 euros, with the balance being national co-financing.

3. Water supply and wastewater collection infrastructure on the Adriatic coast – Bay of Kotor, with a proposed EU grant of EUR 3.89 million;

This project aims to address the challenges of water supply and wastewater treatment in the Bay of Kotor, particularly in the coastal areas of the Municipality of Kotor, Risan, and Perast. This additional grant will ensure the financial sustainability of the project, previously supported by two approved investment grants. The total project value is EUR 33.6 million, which includes the new investment grant of EUR 3.89 million, previously approved EU grants of EUR 8.9 million, a loan from Germany’s Development Bank (KfW) of approximately 12 million euros, with the rest covered by national co-financing.

4. Water supply and wastewater treatment phase V, component 2, in the Municipality of Tivat, with a proposed grant of 9.5 million euros.

This investment is intended to improve the water supply network in Tivat, addressing summer water shortages, eliminating bottlenecks in existing systems, and enhancing the utility company’s operational efficiency and financial sustainability. The total project budget is EUR 24.5 million, comprising an EU investment grant of EUR 9.5 million, a loan from Germany of 12.1 million euros, and the remaining part as national co-financing.

5. Water supply and sanitation in Ulcinj – Phase 1- Component 2: Construction of wastewater treatment plants (WWTP) and related infrastructure, with a proposed EU grant of EUR 30.6 million.

The objective of the project is the comprehensive reconstruction of the water supply network and the construction of a sewerage network, alongside systems for pumping stations, wells, and drains, along with a wastewater treatment plant for the urban area of Ulcinj. The outcome will meet European standards in wastewater treatment, significantly improving seawater quality in the coastal region. The total project budget is EUR 60.7 million, consisting of the EU grant of 30.7 million euros, previously awarded project documentation support of 1 million euros, a loan of 27 million euros from Germany’s Development Bank (KfW), with the remainder from national co-financing.

Regarding the 30th Invitation for technical support in project documentation preparation, the proposal “Construction of a new 110 kV transmission line Virpazar-Briska Gora-Ulcinj at 110/35 kV Virpazar and 110/35 kV Ulcinj, Montenegro” in the amount of 1 million euros was approved. This grant will fund a feasibility study, including cost-benefit analysis and environmental assessment studies. The leading financial institution is the European Bank for Reconstruction and Development (EBRD).