Montenegro: European Union provides a €22 million grant to enhance sustainable water use and climate resilience on an EIB Global-financed project

This article is published in association with European Investment Bank.

• The EU grant will enable the construction and extension of water supply and sanitation infrastructure in three Montenegrin municipalities  
• The funds provided through the Western Balkans Investment Framework will support the construction works and provide technical assistance for the project’s implementation
• These efforts will improve living conditions for around 30 000 people and support sustainable and climate-resilient growth

At the event held today in Podgorica, the European Investment Bank (EIB Global) and Montenegro’s Ministry of Ecology, Sustainable Development, and Northern Region Development have signed a €22.5 million grant agreement, funded by the EU, to develop sustainable water supply and wastewater systems in the municipalities of Kolašin, Rožaje, and Mojkovac. These projects aim to improve the quality of communal water and sanitation services, safeguarding both public health and the environment. By upgrading water quality in areas downstream of the Tara and Ibar rivers, these efforts will also promote sustainable tourism and enhance the living conditions of approximately 30 000 people.

The EU grant channelled through the Western Balkans Investment Framework will support the construction works and technical assistance to ensure the project’s implementation aligns with relevant national and EU standards. The overall cost, estimated at over €34 million, will be primarily financed with this €22.5 million EU grant, as well as a €10 million EIB loan signed previously.

EIB Head of Regional Hub for the Western Balkans Damien Sorrell said: “Together with the European Commission, we are glad to be able to bring forward these financial and technical resources under Team Europe for the benefit of people in Montenegro. Beyond improving water management and ensuring a reliable supply of water, this investment and technical assistance grant channelled through the Western Balkans Investment Framework will contribute to sustainable use of water resources and higher climate resilience in line with the European Union’s Green Agenda, while increasing attractiveness for investors.”

Damjan Ćulafić, Minister of Ecology, Sustainable Development and Northern Region Development, said: “Wethank the European Union and the European Investment Bank for their continuous support in improving infrastructure in Montenegro. These projects are of great importance for our country as they directly impact the improvement of the quality of life of our citizens, environmental protection, and increased resilience to climate change. By investing in water supply and sewage systems in Kolašin, Rožaje and Mojkovac we are taking a significant step toward sustainable development in the northern region and laying the foundation for future economic growth and ecological stability.”

Johann Sattler, the European Union’s Ambassador to Montenegro, remarked: “This grant is another clear example of the European Union’s continued support for Montenegro in its efforts to meet EU standards while prioritising the quality of life for its citizens. The EU Delegation in Montenegro is proud to see that our joint efforts with national and local authorities, as well as the EIB, are yielding tangible results. In the coming period, we look forward to the implementation of additional wastewater projects in the municipalities of Pljevlja, Nikšić, Ulcinj, Kotor and Tivat. We are confident that these projects will not only bring Montenegro closer to the European Union and its accession agenda and improve the lives of its citizens, but will also contribute significantly to climate change mitigation efforts.”

In terms of the project scope, the investment supports the construction of a wastewater treatment plant for a population of *6 000 (PE) and the extension of the water supply and sewerage networks in Kolašin. The municipality of Rožaje will benefit from an expanded 15km wastewater collection network, along with a new wastewater treatment plant for a population of 20 000. In Mojkovac, the project will enable the reconstruction of the existing wastewater treatment plant to serve 5 250 people, the installation of a 10km sewerage network. The project is part of the Economic and Investment Plan for the Western Balkans.

As one of the largest lenders to the global water sector to date, with €90 billion provided for well over 1 700 projects, water security and climate change adaptation are priorities for the EIB.

Background information

About the EIB and EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. We aim to support €100 billion of investment by the end of 2027 — around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through our offices across the world. High-quality, up-to-date photos of our headquarters for media use are available here.

About the EIB in Montenegro:

The EU bank has been active in Montenegro since 1977 and has provided over €1 billion worth of loans to the country, mostly in support of SMEs, education and transport infrastructure. For more information regarding the EIB’s projects in Montenegro, please refer to: https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/montenegro/index.htm

About the EIB in the Western Balkans

The EIB is one of the leading international financiers in the Western Balkans.