- The EIB has provided €116 million to Montenegro's water sector since 2006, comprising €57 million in loans and €59 million in EU grants.
- The programme covers ten municipalities and improves water and sanitation conditions for approximately 200,000 residents.
- Montenegro targets 93% sewerage coverage by 2035 and full compliance with EU water directives by 2045 at the latest.
- The programme has delivered 97 km of water networks, 68 km of sewerage and treatment capacity for 131,000 people so far.
- Tourism accounts for 30% of GDP, making water supply a critical economic and climate challenge.
EIB investment covers 200,000 residents across ten municipalities
The European Investment Bank (EIB) supports Montenegro's water and sanitation sector through one of the country's largest infrastructure programmes. The initiative covers ten municipalities – Andrijevica, Bijelo Polje, Cetinje, Kolašin, Mojkovac, Nikšić, Pljevlja, Podgorica, Rožaje and Ulcinj – improving water supply and wastewater services for approximately 200,000 people.
Since 2006, the EIB has provided a total of €116 million to Montenegro's water sector. The breakdown is as follows:
| Component | Amount |
|---|---|
| EIB loan | €57 million |
| EU grants via the Western Balkans Investment Framework | €59 million |
| Technical assistance | Included in the programme |
Challenges in a sector strained by climate change
Only half of Montenegro's population is connected to sewerage networks, and the public water supply network spans 5,400 km while the sewerage network totals 1,430 km. One of the sector's greatest operational challenges is "non-revenue water" amounting to 70 million cubic metres – water pumped into the system that never reaches customers.
Climate change is placing additional pressure on ageing infrastructure. Droughts, extreme rainfall and flash floods particularly challenge water availability during the tourist season along the coast, where demand surges. Tourism accounts for up to 30% of Montenegro's GDP.
Progress and specific projects
The programme has delivered so far:
- 97 km of new water supply networks
- 68 km of sewerage networks
- Wastewater treatment capacity for 131,000 people
A new generation of projects is nearing construction. With EIB financing and EU investment grants, works are underway or expected to start soon on:
- Wastewater treatment plants in Mojkovac, Kolašin, Bijelo Polje and Rožaje
- Expansion of sewerage networks in Mojkovac, Kolašin, Rožaje, Nikšić and Pljevlja
- Reconstruction of Cetinje's water supply system
EU standards and deadlines
Montenegro has set concrete targets for its water sector: 93% sewerage coverage by 2035 and full compliance with the EU Urban Wastewater Treatment, Drinking Water and Water Framework Directives by 2045 at the latest. The country must also comply with the EU Floods Directive, which requires identification of flood-prone areas and implementation of risk-reducing measures.
"Every euro invested in water infrastructure is an investment in tourism, public health and Montenegro's long-term economic resilience," says Dragutin Sekulović, chief executive manager of Project-Consulting Podgorica, Montenegro's national implementation unit for municipal infrastructure and environmental protection projects.
Technical assistance and capacity building
The EIB's advisory programme JASPERS has spent a decade strengthening Montenegro's project preparation. Senior Water Engineer Łukasz Wyra points to limited institutional capacity, lengthy permitting procedures and land acquisition issues as the main challenges.
"Water infrastructure projects require a broad range of expertise – technical, legal, environmental, procurement and financial. In a small country with a limited workforce, it is difficult to build and retain these skills," explains Wyra.
Technical assistance through EIB Advisory includes workshops and training for local professionals. A particular challenge will be Montenegro's ongoing establishment of the Natura 2000 network, which will introduce new environmental assessments for future projects.
Climate adaptation as a core requirement
Water scarcity and more frequent drought periods are among the largest climate-related threats. Changing precipitation patterns – including reduced winter snowfall and lower rainfall in certain periods – are increasing pressure on water resources. According to EIB experts, reducing water losses in existing networks is one of the most effective climate adaptation measures, as significant volumes of treated water currently leak before reaching consumers.