Agriculture Minister Vladimir Joković signed agreements with 67 potential beneficiaries of the IPARD III program, who are set to invest over 10 million euros, mainly in rural tourism projects. Joković announced that the support would amount to approximately 7 million euros, with the European Union (EU) providing over 5 million euros in non-refundable aid.
“This is one of the most attractive measures, with eligible costs ranging from 10,000 to 200,000 euros per investment. We received 165 applications for investments totaling 26.5 million euros, with potential support exceeding 17 million euros,” Joković said during a media conference marking the signing of agreements with the first group of interested IPARD III beneficiaries.
The funds are designated for the construction, reconstruction, and equipment of hospitality and accommodation facilities, food and beverage preparation facilities, and the improvement of tourism infrastructure. Joković highlighted that last year, under the IPARD II program, 1.5 million euros were paid out for 24 projects.
“The majority of projects will be implemented in Nikšić, Žabljak, and Mojkovac, mainly focusing on rural tourism infrastructure, including solar panel installations,” Joković added.
He expressed hopes to sign agreements with more beneficiaries, which would significantly improve the tourist offer in rural parts of Montenegro. Joković emphasized that these investments would strengthen rural tourism and contribute to the country’s overall tourism development.
EU Ambassador to Montenegro Johan Satler stated that the signing of the first agreements for the allocation of 5 million euros in non-refundable support, out of the total 63 million euros allocated through IPARD III, clearly demonstrates how the EU is improving quality of life in Montenegro. He called for accelerated efforts to close chapters 11 and 13, on rural development and fisheries, by the end of the year.
“This investment will help small businesses, farmers, and families realize their dreams, allowing them to earn a decent living from working their land in the beautiful rural regions of Montenegro,” Satler said.
Marko Radonjić, the Director of the Payment Department and Head of the IPARD Agency, explained that beneficiaries can submit requests for payment either after completing their investments or in phases. They can also request an advance payment of up to 50% of the approved support, provided they secure a bank guarantee. Radonjić highlighted that Montenegro has the most developed system of advance and phased payments in the region, which greatly facilitates beneficiaries with fewer initial funds.
Joković clarified that the call for support was not divided between large and small producers. He emphasized that anyone could apply for investments ranging from 10,000 to 200,000 euros and that business plans required applicants to show how they would finance their part of the investment.
Regarding credit opportunities, Đuro Kažić, the Director of the Credit Sector at the Development Bank, stated that since 2015, 553 IPARD projects worth over 40 million euros had been approved. Last year alone, 139 projects worth 8.5 million euros were completed. He also pointed out that credit conditions for IPARD projects offer favorable terms, including a fixed interest rate of 4% and repayment periods of up to 12 years with grace periods of up to 4 years, depending on the complexity of the investment. Kažić encouraged beneficiaries to apply for credit as soon as possible to expedite their projects and announced new programs aimed at supporting processing and production to strengthen domestic production and reduce imports.
