Montenegro is preparing tenders for 13 infrastructure projects worth an estimated €704.3 million, with procurement expected over the 12 months following 31 July 2026, according to the latest WBIF project database.
The pipeline covers railways, water and wastewater infrastructure, education and electricity transmission, moving a significant part of Montenegro’s EU-backed investment programme towards procurement and construction. Based on estimated 2026 nominal GDP of €8.56 billion, the combined project value equals about 8.2% of annual economic output and is approximately 2.3 times the €305 million state capital budget for 2026.
The €704.3 million represents the estimated total value of the projects rather than contracts that will necessarily be awarded within one year. Financing includes EU grants and loans from the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD) and Germany’s KfW, while implementation will extend over several years.
Railways account for the largest share
Transport projects account for €298.4 million, or approximately 42.4% of the pipeline. The largest individual project is the Bar–Golubovci railway reconstruction, valued at an estimated €227.5 million in the WBIF procurement database. The project covers approximately 39.6 kilometres and includes railway reconstruction, electrification, signalling and telecommunications upgrades.
The Bar–Vrbnica route carries approximately 60% of Montenegro’s rail freight and around 20% of railway passengers. Modernisation is expected to allow speeds of up to 120 km/h on suitable sections, while increasing capacity and reducing operational and maintenance risks.
A 2026 financing package included approximately €112.6 million in EU grants, a €63 million EIB loan and around €50 million of EBRD financing, alongside a relatively small Montenegrin contribution. Two additional railway packages are included in the procurement pipeline. One project, valued at €41.1 million, covers the rehabilitation of 10 steel bridges with a combined length of about 2.47 km and eight tunnels totalling approximately 2.66 km. A further €29.8 million programme includes rehabilitation of three steel bridges, around 20 km of track on the Lutovo–Bratonožići and Bratonožići–Bioče sections, and upgrades to rolling-stock workshops in Podgorica, Bar and Nikšić.
Water and wastewater projects total €229.2mn
Environmental and water infrastructure represents €229.2 million, or around 32.5% of the pipeline, across five projects. The largest is the Podgorica wastewater treatment programme, estimated at €76.6 million. It includes a new treatment facility with capacity for approximately 237,800 population equivalent, around 34 km of sewerage extensions and wastewater infrastructure improvements associated with 13. Jul Plantaže. The financing package includes approximately €33.9 million in grants and a €35 million KfW loan, together with beneficiary contributions.
The Ulcinj wastewater and water-supply project is valued at approximately €61.8 million. It includes a wastewater treatment plant with capacity of around 60,000 population equivalent, approximately 70 km of water-supply network, around 7 km of sewerage and roughly 3,000 new water connections. Its financing includes around €32 million in grants, representing more than half of the estimated investment. A further €32.2 million is allocated for sewerage systems in Nikšić and Pljevlja, including approximately 83 km of new sewer infrastructure.
Another €36.9 million programme covers water and wastewater systems in Kolašin, Rožaje and Mojkovac, including water-network reconstruction, new wastewater-treatment capacity and sewerage extensions. Cetinje adds €21.7 million to the environmental programme. The project includes reconstruction of approximately 92 km of water-supply pipelines, 2,568 connections and a 4MW solar power plant.
Education projects add €121.8mn
Education infrastructure accounts for another €121.8 million. The largest component is a €64.3 million programme for construction and renovation of public pre-university facilities, including energy-efficiency measures. The investment is expected to be divided into several procurement packages. Two new primary schools in City kvart in Podgorica and Karabuško polje in Tuzi represent a separate €29.7 million investment.
The schools are expected initially to provide around 1,500 student places, increasing to approximately 1,824 places at full capacity. Another €27.8 million covers four new preschool facilities in Bar, Berane, Podgorica and Ulcinj, with a combined capacity of approximately 1,114 places.
Electricity transmission receives €54.9mn
Energy projects account for the remaining €54.9 million, or about 7.8% of the pipeline. The first is the proposed 38-km, 110kV Herceg Novi–Vilusi transmission line, including associated substations, with an estimated value of €19.3 million. The second is the €35.6 million second phase of the Brezna substation, which will upgrade the facility to 400/110/35kV as part of the wider Trans-Balkan Electricity Corridor. The investments are linked to Montenegro’s electricity network development and its ability to integrate additional renewable-generation capacity.
Procurement will test implementation capacity
The €704.3 million pipeline creates a significant procurement market for civil engineering, railway systems, electrical equipment, water technology, construction, design and consulting services. Projects financed through EIB, EBRD, KfW and WBIF generally follow international procurement standards, potentially opening major contracts to regional and European contractors. Montenegrin companies can participate through subcontracting, local construction, materials, transport, installation and specialist services.
Implementation capacity remains an important factor. Challenges include land expropriation, permitting, state-property issues and coordination between institutions. Montenegro is also preparing the Mateševo–Andrijevica motorway section, whose main design-and-build contract is valued at approximately €694 million, adding to demand for engineering and construction capacity. Project estimates may also change between feasibility, financing and tendering stages because of movements in construction wages, steel, electrical equipment, railway systems and imported machinery. The Bar–Golubovci railway is one example: WBIF lists an estimated value of approximately €227.5 million, while a separate 2026 financing announcement referred to an overall estimated cost of about €230.8 million.
EU financing reduces pressure on public finances
The grant component is particularly important given Montenegro’s public debt position. Gross public debt stood at approximately €5.13 billion, or 59.9% of GDP, at the end of the first quarter of 2026. The government expects the ratio to rise temporarily during 2026 because of pre-financing for major 2027 maturities, including a €750 million Eurobond. EU grants and concessional financing from international financial institutions allow Montenegro to undertake infrastructure investment without financing the entire cost through sovereign borrowing. WBIF’s March 2026 portfolio showed approximately €388 million in contributions to investment projects supporting around €1.1 billion of total investment value since 2009.
The €704.3 million procurement pipeline should not be added directly to that historical total because projects already included in the WBIF portfolio can also appear in the current procurement pipeline. Montenegro is targeting 2028 for EU accession, while infrastructure investment is being advanced in areas including transport, environmental standards, education and electricity networks. The current pipeline comprises approximately €300 million of railway investment, €229 million in water and environmental infrastructure, €122 million for education and €55 million for electricity transmission, with tenders expected to move forward by the end of July 2027.
