Montenegro is preparing to move its €40 million World Bank Waste Management Reform Project into implementation after state power utility EPCG agreed to make facilities at the former Željezara complex in Nikšić available to the government. EPCG will provide the government with free use of the former Livnica and Čeličana halls for 30 years, meeting the final institutional condition required for the World Bank financing to become effective.
Nikšić facility planned for more than 75,000 people
The World Bank approved the €40 million Waste Management Reform Project earlier this year. The planned regional treatment centre in Nikšić is expected to serve more than 75,000 people and include recycling, composting and modern waste-treatment infrastructure. The project also covers remediation of approximately 11 hectares of contaminated land at the former KAP industrial site.
Former industrial facilities to support waste infrastructure
The agreement on the Nikšić property moves the programme from financing approval toward implementation. The use of existing industrial facilities could reduce the need for land acquisition and shorten the preparation period. It also assigns a new function to part of the former Željezara complex by connecting brownfield redevelopment with environmental infrastructure. The project could create procurement opportunities for engineering, equipment, waste-processing and environmental-service companies once tendering begins.
Regional waste system requires municipal coordination
The implementation challenge extends beyond construction. Regional waste-treatment centres require predictable municipal waste flows, appropriate tariff structures and agreements between participating local governments.
Infrastructure alone cannot resolve collection and recycling deficiencies if municipalities continue to operate fragmented systems. The World Bank programme is therefore expected to combine physical investment with institutional reform.
Loan effectiveness is the next milestone
Montenegro faces substantial investment requirements in waste management as EU accession raises environmental standards and increases pressure to reduce dependence on landfills. The immediate milestone is the effectiveness of the World Bank financing. With the condition concerning the Željezara property addressed, the programme can move from legal preparation toward tenders and construction.
