Montenegro’s largest retailer Voli has secured €2.2 million in own funds for an environmental upgrade at its farm in Spuž, but regulatory and political disputes have delayed the project. Chairman said the company does not require financing from IPARD, the European Union, the state or the municipality to implement the investment.
The project would permanently close the farm’s existing open lagoons and introduce a new waste-management system designed to address odour and environmental concerns at the facility. Project documentation has been in preparation for approximately 18 months. Voli said the existing lagoons comply with current regulations, but the company intends to replace them with a more advanced waste-management solution.
The proposed investment comes as Montenegro moves toward stricter environmental requirements associated with EU accession. Environmental compliance is expected to require increasing capital expenditure across agriculture, food production, industry and tourism, including investments in waste management, water treatment, emissions control and energy efficiency.
The Spuž project highlights the role of administrative procedures in privately financed environmental investments. Although Voli says the required funding is available and the technical documentation process is under way, implementation has been delayed by regulatory and political disputes surrounding the farm. For companies planning environmental upgrades, delays in permitting or administrative decisions can create uncertainty even when financing has already been secured.
The issue is particularly relevant to agriculture and food production, where farms handling animal waste require systems for storage, treatment and disposal designed to limit odour, groundwater contamination and other environmental impacts. Open lagoons have traditionally been used in parts of the agricultural sector but are facing increasing environmental and community scrutiny. Their replacement can require substantial capital investment. Voli’s planned €2.2 million expenditure represents a significant investment in environmental infrastructure at a single farm, with the company intending to finance the full amount internally rather than depend on grant approval or public co-financing.
Montenegro is preparing for broader implementation of EU environmental requirements under Chapter 27, one of the investment-intensive areas of the EU accession process.
The financial burden of meeting those requirements will extend beyond the public sector. Private companies will also have to invest in waste, water, industrial emissions and resource-efficiency improvements. For larger businesses such as Voli, available balance-sheet capacity can support such expenditure, while smaller companies may face greater difficulty financing environmental upgrades. This increases the importance of predictable regulatory procedures for private investment. Projects financed through loans or grants can face additional execution risks when administrative approvals are prolonged.
The Spuž project also has implications for Voli’s wider business. Environmental issues at a production facility can affect corporate reputation even when a company maintains that its operations comply with existing regulations. Voli operates a vertically integrated food business linking agricultural production with a large national retail network, making environmental performance at the production level relevant to the wider group. The planned investment therefore involves both environmental infrastructure and the management of potential reputational risks.
The project also comes amid efforts to strengthen domestic agricultural production and processing in a country that imports large volumes of food. For local producers, environmental requirements represent an investment condition for future expansion. The Spuž case involves a company prepared to finance the required upgrade itself, while the project remains delayed by regulatory and political issues. As Montenegro advances toward EU environmental standards, public and private investment will be required for improvements in water, waste and industrial systems. For Voli, the €2.2 million investment remains dependent on the completion of the administrative process before construction can begin.
