The Municipality of Kolašin has signed an €11.75 million contract including VAT for a new wastewater treatment plant, sewerage network and upgrades to the town’s water-supply system, with construction scheduled to begin in early September. The contract has been awarded to an Italian consortium comprising JV Spiga, Ibi Idrobioimpianti and M.E.C. Meccanica Ecologica. The works are valued at approximately €9.7 million excluding VAT, or €11.754 million including VAT.
Project financing combines €8.36 million in grants with €4 million in credit financing, with support from the Western Balkans Investment Framework and the European Investment Bank. Implementation is scheduled to take 36 months, extending the programme into 2029 if the contractual timetable is maintained.
The first phase includes construction of a wastewater treatment plant with capacity for 4,000 population equivalents, approximately 9.2 kilometres of sewerage network and priority interventions on Kolašin’s water-supply system. Longer-term plans provide for treatment capacity to increase to 6,000 population equivalents, while the sewerage network is expected to reach approximately 23 kilometres. The municipal investment is being implemented as Kolašin undergoes rapid development as a mountain tourism destination. Hotel construction, apartment projects, ski infrastructure and developments linked to the former economic-citizenship programme have increased requirements for water supply, sewerage, roads, electricity and winter infrastructure.
The expansion of private development has not always coincided with the delivery of public infrastructure. Several hotel projects were approaching completion during the summer while parts of the supporting municipal infrastructure remained in procurement. Separate tenders launched in July covered snowmaking facilities at Kolašin 1600 and wastewater infrastructure for the Kolašin 1450 and Kolašin 1600 mountain centres. The combined estimated value of those works exceeded €8.5 million excluding VAT.
Investors have indicated that completed accommodation cannot become fully operational without the required utility connections. The new wastewater project adds infrastructure capacity alongside the expansion of hotels, residential developments and ski facilities in Kolašin. Its implementation requires planning, environmental procedures, public procurement, financing arrangements, supervision and coordination between national and municipal authorities.
The 36-month construction period means the project will not immediately resolve infrastructure requirements for every development awaiting completion. Instead, the first phase establishes additional water and wastewater capacity for the next stage of development. The infrastructure requirements extend beyond individual tourism and real-estate projects. Additional accommodation capacity increases demand for water supply, wastewater treatment, electricity distribution, roads, parking and waste-management systems.
These requirements are particularly relevant to mountain destinations, where seasonal demand can create infrastructure needs above those generated by the permanent population. The wastewater treatment and water-supply works also address infrastructure requirements associated with the environmental conditions supporting mountain tourism. Increased hotel and residential construction requires corresponding wastewater capacity. Kolašin’s development has therefore moved from attracting private investment and expanding accommodation toward implementing the public infrastructure required to support that development. The €11.754 million contract including VAT covers a wastewater treatment plant, sewerage network and water-supply improvements, with work planned over the next 36 months.
