EIB Global steps up support for Montenegro’s economic development

This article is published in association with European Investment Bank.

• EIB has signed a Host Country Agreement with the government of Montenegro  
• EIB will provide a loan of €18 million loan and a grant of €2.3 million for the Montenegro’s education system  
• Montenegro will use the loan for nationwide school renovations, while UNOPS will deploy the grant to provide technical assistance

Today at the European Investment Bank (EIB Global)’s Headquarters in Luxembourg, EIB Vice-President Robert de Groot and Montenegro’s Minister of Finance Novica Vukovic signed a Host Country Agreement between the EIB and Montenegro. This milestone reaffirms EIB Global’s commitment to supporting Montenegro on its path towards convergence with the EU, while paving the way for an EIB Representative to be based in the country for closer collaboration in the future.

In the presence of Montenegro’s Minister of Education Andjela Jaksic-Stojanovic and UNOPS Assistant Secretary-General and Deputy Executive Director for Delivery and Partnerships Kirstine Damkjaer, EIB Global signed a €20.3 million for the Montenegrin education sector. These funds comprise of an €18 million loan to the Montenegrin government and a grant to the United Nations Office for Project Services (UNOPS) for €2.3 million for technical assistance ensuring that the funds are used a strategically and impactfully.

The loan will go towards the renovation and digitalisation of pre-primary, primary and secondary schools in Montenegro, as well as to energy-efficiency improvements and the installation of new equipment for vocational training. Provided under the EIB’s Economic Resilience Initiative, the grant will be used by UNOPS to deliver technical support to the Montenegrin Ministry of Education in assessing existing school infrastructure and preparing key investment projects, while ensuring a strategic and impactful deployment of funds

“The Host Country Agreement signed today formalises the strong EIB support to Montenegro and marks a new chapter in our longstanding cooperation. This, alongside today’s new financing for Montenegro’s education sector, is set to bolster the country’s economic resilience. By creating a cutting-edge learning environment, we will deliver immediate and lasting benefits for students and teachers across Montenegro, while fostering youth employability and economic sustainability in response to evolving market demands.,” EIB Vice-President Robert de Groot said.

“Today’s signing of the loan agreement to improve education infrastructure, along with a Host Country Agreement establishing the EIB’s presence in Montenegro, strongly reaffirms the strategic partnership and mutual trust we have built over the years. These investments are not just about renovating schools – they are about investing in people, in knowledge, and in Montenegro’s future. The EIB’s physical presence in our country will further strengthen cooperation and ensure more effective implementation of development projects that serve our citizens and accelerate our path toward EU integration.”, said Finance Minister Novica Vuković.

The new accords bring total EIB Global support for education in Montenegro to €55 million since 2019, including an EU grant for €11 million provided under the Western Balkans Investment Framework. One result of previous financing in this area is the opening of Vladimir Nazor primary school in Podgorica

“The project entitled “Enhancing the Montenegrin Education System,” implemented by the Ministry of Education, Science and Innovation in cooperation with the Ministry of Finance and the European Investment Bank, is already producing tangible results. We are building new schools, renovating existing facilities, modernizing vocational schools, and investing in advanced equipment and infrastructure. This represents the most comprehensive investment in education infrastructure in the history of our country. My special thanks go to the EIB and UNOPS for their continued trust, support, and commitment to our shared vision for the future of education in Montenegro,” said Education Minister Andjela Jakšić-Stojanović.

UNOPS has years of experience working with the Montenegrin government to advance a range of areas including education.        

“This agreement marks a milestone in UNOPS’ partnership with the EIB and the Government of Montenegro. UNOPS is proud to play a role in driving a transformative shift in Montenegro’s education system to ensure that appropriate infrastructure addresses the needs of people and becomes the enabler of key reforms in the country,” said Kirstine Damkjaer, UNOPS Deputy Executive Director for Delivery and Partnerships Kirstine Damkjaer.

“With this new investment, the European Union is helping Montenegro improve everyday conditions of pupils and teachers across the country. Renovated classrooms, energy-efficient buildings, and modern equipment are not only vital for quality education — they also support long-term economic development and social cohesion. This is a strategic investment in Montenegro’s future, and a clear sign of our continued partnership on the path to EU membership.”, said EU Ambassador to Montenegro Johan Sattler.

Background information

About the EIB and EIB Global

The EIB is the long-term financing institution of the European Union, owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB supports projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). 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. It aims 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 local people, companies and institutions through its offices around the world.

About the EIB in Montenegro

The EU bank has been an active partner of Montenegro, providing almost €1.1 billion in loans to the country, mostly in support of SMEs, education and transport infrastructure. For more information on EIB projects in Montenegro, visit https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/montenegro/index.htm.

About the Economic Resilience Initiative (ERI)

The Economic Resilience Initiative, which backs the grant awareded, was established by the EIB in 2016 to channel donors’ resources to impactful projects in the Southern Neighbourhood and Western Balkans to help meet the challenges posed by forced displacement and migration. ERI has measurable economic, social and environmental outcomes that contribute to sustainable development goals relating to clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, and sustainable cities and communities.

About UNOPS

UNOPS offers practical solutions across peace and security, humanitarian and development operations. We help the United Nations, governments and other partners, such as the European Union, its Member States and financial institutions like the European Investment Bank, to manage projects, and deliver sustainable infrastructure and procurement across the world.