Montenegro is considering redirecting approximately €28.8 million in unused capital-budget allocations after reviewing public investment projects facing delays in housing, tourism, healthcare and other infrastructure sectors.
The Ministry of Public Works examined 86 capital-budget items and identified funds unlikely to be fully spent by the end of 2026. The government intends to transfer available funding towards projects that can make progress before the end of the fiscal year, rather than leave the appropriations unused.
The proposed reallocation does not mean the affected projects have been cancelled. Instead, it reflects delays that have prevented planned expenditure from translating into construction activity within the original schedules.
The largest affected allocations include approximately €4.83 million for the Velje Brdo residential development in Podgorica and more than €5.2 million across four ski-centre programmes. Healthcare and social infrastructure account for a further €6.1 million in funds that could be reprogrammed.
Ski Resorts Face Delays to Infrastructure Investment
The ski-centre allocations under review comprise approximately €1.95 million for Hajla, €1.5 million for Žarski, €1.31 million for Kolašin and €500,000 for Durmitor.
An additional €500,000 allocated for snowmaking infrastructure at Kolašin 1450 and Kolašin 1600 is expected to remain unused because of contractual litigation. Delays to snowmaking systems leave mountain resorts more dependent on natural snowfall, affecting the operating conditions of ski businesses and creating uncertainty for hotels and property investors whose revenues are linked to winter tourism.
The issue is particularly relevant to Kolašin, which is expanding as a tourism and real-estate market. Montenegro has invested substantially in northern ski infrastructure, making the timely delivery of planned facilities important for the development of mountain tourism.
Velje Brdo Housing Programme Among Largest Affected Projects
The proposed reallocation also includes approximately €4.83 million earmarked for the Velje Brdo residential development in Podgorica. The government has positioned Velje Brdo as one of Montenegro’s most significant residential projects. Delays during the initial implementation stages have limited the amount of capital that can be spent within the planned budget period.
The review also covers healthcare and social infrastructure, with approximately €6.1 million in allocations potentially available for reprogramming.
Across the affected projects, delays have been attributed to incomplete technical documentation, unresolved property issues, procurement difficulties and implementation schedules that no longer permit the planned funds to be spent during the current fiscal year.
Capital Spending Depends on Project Preparation and Procurement
The reallocation highlights the distinction between approved capital expenditure and actual infrastructure delivery. Montenegro has developed a growing pipeline of public investment projects supported by the state budget, EU grants and international financial institutions, but administrative and procurement capacity continues to influence the pace of implementation.
Slow execution also affects contractors and suppliers, which may allocate staff, equipment and other resources to projects that subsequently begin later than expected. Such delays reduce visibility over future workloads and order books.
For public finances, redirecting unused appropriations could improve budget execution. Transferring funds between projects does not address the underlying reasons for implementation delays. Montenegro has access to EU support, international financial institution loans and sovereign financing, while its capital-investment pipeline continues to expand. Converting those financing commitments into completed infrastructure depends on project preparation, procurement management and coordination among ministries, municipalities and public companies.
