Montenegro has advanced preparations for a €55 million water and climate-resilience investment programme, following government approval of negotiated documentation for a proposed €35 million loan from the World Bank, complemented by planned €20 million financing from the OPEC Fund.
The programme is intended to finance improvements to drinking-water supply networks, wastewater infrastructure and climate adaptation measures through 2031. Municipal projects with an estimated combined value of approximately €40.6 million have been identified, including investments in Pljevlja and Nikšić.
The proposed financing from the International Bank for Reconstruction and Development (IBRD) carries a 15-year maturity and a two-year grace period. Its interest rate would be linked to six-month EURIBOR, with a margin currently indicated at approximately 0.74 percentage points.
The government has approved the negotiated financing documentation and draft loan agreement. The financing has not yet been fully signed and disbursed, while individual construction contracts will still need to be awarded through procurement procedures.
The investment programme addresses infrastructure requirements associated with Montenegro’s EU accession process, particularly the modernisation of municipal water supply networks, wastewater treatment systems and infrastructure designed to withstand climate-related pressures.
Potential works could generate contracts for engineering and construction companies involved in pipelines, water treatment facilities, pumping systems, reservoirs and project supervision. Implementation remains a key consideration, as delays involving project design, permitting and procurement have slowed the delivery of infrastructure investments across several sectors, despite Montenegro’s access to substantial EU and international development financing.
