EBRD support regional water supply system Montenegro

€15 million to construct northern branch of the costal water supply system

London, United Kingdom – The EBRD is lending €15 million to the Montenegrin regional water supply company to support the rehabilitation and construction of a regional water supply system that will provide potable water from Lake Skadar to the municipalities along the Montenegrin coast.

The project, which has been developed in close co-operation with the World Bank, will provide a long-term sustainable solution to water supply requirements of the coastal cities and underpin Montenegro’s expanding tourism potential.

The Bank will finance the rehabilitation and construction of the northern branch of the system which will supply Budva, Tivat, Kotor and Herceg Novi, and the World Bank will finance water extraction from Skadar Lake, water treatment, the main continental part of the network and the southern branch supplying Bar and Ulcinj.

The borrower, “Regionalni Vodovod Crnogorsko Primorje” is a state-owned enterprise established for the purpose of providing bulk water to the local water companies serving the coastal municipalities in Montenegro.

The EBRD loan programme carries a sovereign guarantee from the Montenegrin government. It is being disbursed in two loans over two years to match the profile of the country’s investment requirements.

Considering that tourism is the main growth sector in Montenegro, securing safe and uninterrupted water supply for the coastal region is of strategic importance for the country, and the government has given it its highest priority.

Marek Lorinc, Head of the EBRD office in Podgorica, said the project will help implement a major programme of construction of the Montenegrin costal water supply system. With this programme the Bank is supporting the main infrastructure needs in the country, which opens up good prospects for continued growth in the tourism sector in a way which attracts higher value-added tourism, Mr Lorinc said.

In addition, grant funding for this programme is expected to be provided by the private developer Adriatic Marinas. Additional technical assistance support will be provided by the EBRD and the World Bank for overall project management, monitoring and implementation support.