Montenegro has launched a new rehabilitation phase at the Ulcinj Saltworks, with works on protective infrastructure under way as authorities and environmental organisations prepare an EU-funded programme potentially worth more than €15 million. Around 8 km of protective embankments are being rehabilitated under a contract valued at approximately €260,000 including VAT, awarded to Cetinje-based SBCC. The contractor has 45 days to complete the works. The project follows the earlier rehabilitation of approximately 6.6 km of embankments and is part of efforts to improve water management at the site.
New management structure
Montenegro and the Municipality of Ulcinj have established a new management company for the Saltworks, with the state holding a 60% stake and the municipality 40%. The arrangement provides a new institutional framework following years of uncertainty concerning ownership, management and investment responsibilities at the site. Authorities and environmental organisations are also preparing an IPA funding proposal exceeding €15 million for additional rehabilitation. If approved, the programme could finance further water-control systems, infrastructure, habitat protection and works necessary for a possible resumption of salt production. The funding has not yet been secured.
Industrial and environmental functions
Salt production at Ulcinj ended after the final harvest in 2013, leaving one of Montenegro’s largest former industrial sites without its traditional economic activity. The rehabilitation of embankments and water-management infrastructure is required for any potential restart of commercial production.
At the same time, the Saltworks has significant biodiversity value, particularly as a habitat for migratory birds. Future development therefore has to combine industrial activity with environmental protection. The site’s dual role has complicated its rehabilitation while also creating a basis for access to European environmental and regional-development funding. Traditional salt production relies on controlled seawater movement through evaporation basins. The same hydrological system supports habitats that underpin the Saltworks’ ecological importance.
Potential economic uses
The economic role of a functioning Saltworks could extend beyond salt production to tourism, environmental research and local employment, while restoring production of a commodity historically associated with Ulcinj. Salt production could also support premium food products and tourism-related branding rather than relying solely on the low-margin bulk commodity market. A commercially viable production model would have to operate within the site’s environmental requirements.
European funding increasingly supports projects that combine biodiversity protection, climate resilience and local economic development, while the Ulcinj Saltworks has characteristics spanning these areas.
The immediate €260,000 embankment contract is significantly smaller than the proposed EU programme. Its role is to restore the basic physical infrastructure after years of deterioration. Functioning embankments and controlled water levels are required to manage both bird habitats and the conditions needed for industrial salt production. The next stage is the preparation and potential approval of the €15 million-plus IPA programme, together with the development of a commercially viable model for the future use of the Saltworks.
