Montenegro’s water-supply problems are drawing attention to major network losses, with around 68% of water entering municipal systems estimated to become non-revenue water. The situation has become particularly visible in Nikšić, where drought and poor hydrological conditions forced the local water utility to introduce rotating restrictions. Some neighbourhoods have been left without water for up to 16 hours a day, while losses in the city network are estimated at around 71%. The figures point to challenges extending beyond water availability. Ageing infrastructure, inadequate metering and billing gaps are contributing to the volume of water that does not generate utility revenue.
Network Efficiency and Investment
The scale of losses is creating demand for district metering, acoustic leak detection, pressure management, smart meters, GIS network mapping and SCADA upgrades. Reducing leakage can effectively increase available supply without requiring new reservoirs or water-abstraction systems. It can also reduce pumping and treatment costs while improving utility revenues.
The issue is becoming more significant as drought conditions reduce the ability of existing water sources to absorb network inefficiencies. Montenegro is preparing a new water-services and climate-resilience investment programme backed by the World Bank, with financing expected to support improvements in reliability, efficiency and network management. The programme could shift utilities from emergency pipe repairs toward more systematic water-loss reduction.
Opportunities for Water Infrastructure Contractors
The investment programme could increase demand for engineering companies combining field inspections with hydraulic modelling, digital monitoring and asset-management systems. Performance-based contracts could also become part of the market, with private operators potentially receiving payments linked partly to verified reductions in water losses rather than solely to installed equipment. At an estimated 68% non-revenue water, Montenegro’s network losses represent a major infrastructure challenge. Reducing leakage can provide additional effective supply while also supporting climate resilience and lowering operating costs. New water infrastructure may still be required, but improving network efficiency has become a central infrastructure priority as drought increases pressure on existing supplies.
