The coastal municipality of Herceg Novi is embarking on a significant infrastructure investment cycle valued at approximately €120 million. This initiative includes a variety of public projects that are either currently underway or planned, as part of Montenegro’s national capital budget. The program aims to enhance transport infrastructure, public amenities, and utility systems while fostering tourism development in the Bay of Kotor region.
Government officials have indicated that the investment portfolio features both ongoing and new projects scheduled for the 2026 budget cycle. A primary focus is the completion of a new bus station in Herceg Novi, which is anticipated to be operational before the upcoming tourist season.
The new bus terminal is considered one of the most significant transport investments in the municipality in decades. The project encompasses the construction of the main station building, passenger platforms, parking facilities, and supporting infrastructure, along with a new access road linking the facility to the city’s transport network. The total investment for this bus station project is estimated at around €10 million.
In addition to the transport-focused project, the broader investment program includes various infrastructure developments aimed at bolstering economic and tourism capacities in Herceg Novi. Discussions between national authorities and municipal administration have identified several projects, including improvements to road infrastructure on the Luštica peninsula, upgrades to the regional water supply network, and expansions of sewage and coastal infrastructure.
Among the largest initiatives slated for future years is the construction of an Olympic-size swimming pool in Igalo. This project will be financed through a co-investment model involving both the Government of Montenegro and the Municipality of Herceg Novi, marking it as a key public infrastructure endeavor.
The investment cycle also encompasses educational and heritage revitalization projects. Notable among these is the transformation of the children’s department at the Igalo Institute into an educational facility and the reconstruction of the historic Španjola fortress, which has been included in the national capital investment plan.
Municipal officials stress that this investment cycle aims not only at modernizing infrastructure but also at fostering long-term economic growth. By enhancing transport connectivity and public facilities, these projects are expected to strengthen Herceg Novi’s tourism economy while contributing to broader development in the Bay of Kotor region.
The new bus station is projected to significantly enhance the city’s transport network by relocating the terminal and expanding its capacity. This development should alleviate congestion on the main coastal road and create a more efficient hub for regional and international bus traffic during peak tourist months.
Alongside these initiatives, discussions are ongoing regarding additional investments in infrastructure, including improvements to coastal promenades and wastewater management systems. These projects are deemed crucial for maintaining environmental standards and ensuring sustainable tourism development along Montenegro’s Adriatic coastline.
The €120 million investment cycle stands as one of Herceg Novi’s most substantial development programs currently active. By leveraging municipal planning alongside national capital funding, these projects aim to fortify the city’s infrastructure foundation, expand tourism capacity, and modernize public facilities in a municipality increasingly pivotal to Montenegro’s coastal economy.
If executed on schedule, this program will transform key aspects of Herceg Novi’s infrastructure over the coming years, positioning it to attract a larger share of tourism flows along the Adriatic while enhancing services and quality of life for its residents.
