Almost 70,000 people from three municipalities and two residential areas on the Montenegrin coast will enjoy better water supply thanks to an EBRD €24 million loan to finance improvements to the regional water supply network.
The financing includes a €12 million loan for the construction of a water pipeline to Herceg Novi and a second pipeline from Budva to Tivat and Kotor. The line will provide adequate and reliable water supply which is also a prerequisite for the further growth of tourism in the coastal areas.
The second part includes a €12 million loan to finance the construction of a new secondary water supply network and wastewater infrastructure in the Dobra Voda and Veliki Pijesak neighbourhoods of Bar.
This will provide potable water and wastewater infrastructure to settlements that are currently not connected to the water network.
Montenegro is experiencing an ever-increasing demand of water supply as a result of tourism development. Given the importance of the sector to the country’s economy, securing safe and uninterrupted water supply for the coastal region is a priority.
The development of climate-resilient water supply and improved wastewater collection and treatment infrastructure will reduce the impact from untreated wastewater on local water resources.
The investment supports the county’s move towards a greener and more sustainable economy in line with the EBRD’s Green Economy Transition (GET) approach.
Technical support for the development of energy efficiency of renewable projects in Montenegro is supported by the Government of Austria.
The EBRD is a leading institutional investor in Montenegro and has supported over 63 projects with a cumulative business volume of about €578 million for investments worth over €1billion.