Montenegro’s northern municipality of Kolašin has outlined an investment programme worth more than €111 million through 2031, covering tourism, industrial and business zones, utilities and public infrastructure. The municipality’s strategic development plan includes approximately 120 projects, with financing expected from municipal and state budgets, European Union funds, donations and potential private-sector participation.
Among the planned investments are the Bakovići business zone, infrastructure for the Drijenak industrial zone, the Jabuka eco-industrial park, tourism infrastructure, snowmaking systems, water and wastewater networks, local roads and energy-efficiency projects.
Kolašin has undergone significant development as tourism and real-estate investment have expanded in the mountain municipality. New hotels, residential developments, ski infrastructure and improved road connections have contributed to the increase in investment activity. The completion of the first section of the Bar-Boljare motorway also improved road access from Podgorica.
Industrial Zones Included in Development Plan
The new investment programme seeks to expand economic activity beyond tourism, with industrial and business zones forming a substantial part of the planned projects. The Jabuka eco-industrial park is among the developments included in the programme, alongside infrastructure for the Bakovići and Drijenak zones. The plan envisages financing from multiple sources, including public budgets, EU funding, donations and potential private investment. The municipality’s ability to secure external financing will be important because its own budget cannot fund the full €111 million programme.
EU accession could provide access to infrastructure and regional-development financing, while projects seeking grants would require technical preparation, including feasibility studies, designs, property resolution, environmental approvals and procurement documentation.
Previous Programme Had Limited Implementation
The municipality’s previous development programme included 45 planned projects, of which only 10 were fully completed. Investment between 2018 and 2022 totalled approximately €3.37 million, representing 20.3% of the roughly €16.47 million initially planned. The new programme is therefore almost seven times larger in nominal investment value than the spending envisaged under the previous framework. Its implementation would require project preparation, permitting, procurement, financing and municipal administrative capacity to support the larger investment volume. Montenegro’s municipalities have faced difficulties converting available international financing into completed infrastructure because of limited project-management capacity.
Infrastructure Requirements Increase With Tourism
Tourism development has increased pressure on roads, water supply, wastewater treatment, parking and waste management in Kolašin. Private construction and hotel investment can progress faster than public infrastructure, potentially creating capacity constraints in municipal services. Snowmaking is another planned infrastructure area. More reliable artificial snow could reduce the exposure of the ski sector to warmer winters and variable snowfall, potentially extending the tourism season and supporting the financial planning of hotels and residential projects dependent on winter tourism.
Such systems also require adequate water, electricity and supporting infrastructure. Similar requirements apply to the planned business and industrial zones. Securing land is one part of the process, while providing roads, utilities and connections needed by prospective investors requires additional public infrastructure. The municipality’s development programme includes these investments as Kolašin continues to expand tourism, real-estate activity and planned business infrastructure through 2031.
