Montenegro’s planned fishing port at Cape Đeran in Ulcinj is now estimated to cost €31.07 million, more than twice the previously projected investment and creating a financing gap under a World Bank-backed fisheries and agrifood programme. The Agriculture Ministry’s latest implementation report places the project cost at €31.07 million, compared with the earlier estimate of €14.6 million. The revision represents an increase of approximately €16.47 million, or 113%.
Project preparation nears construction stage
The project’s main design has been completed and technically reviewed, while tender documentation is nearing completion. Authorities are preparing to proceed with the construction permit and procurement of the works.
The increase has shifted the main challenge from project preparation to financing. The Cape Đeran port is part of Montenegro’s Climate Resilient Fisheries and Agrifood Sector Development programme, which is supported by a World Bank loan of approximately €33 million. The financing covers a wider portfolio of fisheries and agricultural investments and is not dedicated exclusively to the Ulcinj project. Previous programme planning assigned around €14.72 million to the fishing-port component. With the revised estimate now exceeding €31 million, the allocation would have to more than double to cover the project at its current scope.
Montenegro could address the shortfall through a combination of redirected financing, additional borrowing or grants, phased construction, or changes to the project design. The selected approach could affect the timetable for implementation.
Planned infrastructure for Ulcinj fisheries
The planned facility is intended to address a longstanding infrastructure gap in Ulcinj, which has an active fishing fleet but lacks a modern dedicated port with secure berthing, landing facilities, cold-chain infrastructure and other services needed for a more organised commercial fishing sector. The proposed infrastructure would serve functions beyond vessel berthing. A modern fishing port requires facilities for landing and handling catches, sanitary controls, fuel and maintenance, waste management, as well as potentially refrigeration and processing infrastructure. The investment is also linked to the development of domestic fisheries and Montenegro’s alignment with EU food-safety, traceability and fisheries standards as the country progresses towards accession.
Construction costs affect revised estimate
Detailed project development can expose costs that are not fully reflected in earlier conceptual estimates. Marine infrastructure is particularly dependent on engineering conditions, including requirements associated with breakwaters, marine structures and coastal foundations. At the same time, construction costs in Montenegro have increased materially in recent years, affecting labour, steel, concrete, equipment and specialist marine works.
The scale of the revision means the change is more significant than an adjustment to a contingency allowance. A 113% increase alters the financing requirements and raises the amount of funding that must be secured before construction can proceed.
Wider infrastructure financing implications
The Cape Đeran project also reflects a wider issue for Montenegro’s infrastructure pipeline. Projects initially costed several years ago can reach procurement after construction costs have risen substantially, while EU and international financial institution commitments based on earlier estimates may no longer cover the full investment. For Ulcinj, the port is also part of a broader effort to diversify local economic activity. While the municipality is associated with larger tourism, hotel and residential developments, the fishing-port project would provide formal infrastructure for an established traditional industry.
The facility could support restaurants, seafood processing and local supply chains, while stronger fisheries infrastructure could help reduce reliance on imported seafood and improve the traceability of domestically produced fish products.
Financing gap remains unresolved
The revised investment requirement also brings greater scrutiny to the project’s economic proportionality. At €31.07 million, policymakers will have to assess whether the expected economic and social benefits justify committing substantially more public or international financial institution funding than originally planned. The higher cost does not by itself determine the economic viability of the project. Marine infrastructure can have a long operating life and support activities extending beyond direct port revenues, but the revised investment increases the requirement to demonstrate value for money.
The World Bank-backed framework provides for further financing and procurement analysis as the project advances. The next stage will depend on determining how the additional €16 million-plus will be financed and whether the current project scope will be maintained. With the design substantially prepared and tender documents nearing completion, the principal unresolved issue is now the financing needed to take Cape Đeran from project preparation to construction.
