Montenegro receives a €23 million grant to enhance sustainable water use and climate resilience
A €23.5 million grant agreement was signed on 10 March 2025 in Podgorica between the European Investment Bank (EIB Global) and Montenegro's Ministry of Ecology, Sustainable Development, and Northern Region Development have signed. The EU funds will help 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 contribution, 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.
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. We are confident that these projects will not only bring Montenegro closer to the European Union and its accession agenda but will also contribute significantly to climate change mitigation efforts.”
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 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: “We thank 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.”
In terms of the project scope, the investment supports the construction of a wastewater treatment plant for a population of around 6,000 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, which contributes to the EU’s Global Gateway strategy.
The WBIF is part of the Global Gateway - the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. Global Gateway aims to mobilise up to €300 billion in investments. Through a 'Team Europe approach', Global Gateway will bring together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact.
