The Minister of Finance, Novica Vuković, held a meeting with a World Bank team led by Christopher Sheldon, the head of the World Bank Office for Montenegro and Bosnia and Herzegovina, to discuss the progress of ongoing investment projects financed by World Bank loans. The meeting also focused on defining the next steps for future collaboration.
According to a statement from the Ministry, the meeting provided an opportunity for the Ministry of Finance team and their long-standing partner, the World Bank, to review the results and implementation dynamics of investments worth 523 million euros, carried out through various projects so far. They also discussed the challenges encountered during their implementation.
Minister Vuković expressed his gratitude for the World Bank’s long-term support for Montenegro and emphasized the government’s commitment to accelerating efforts in utilizing funds efficiently and speeding up reform implementation, to foster progress in Montenegro’s EU accession process.
Christopher Sheldon expressed his appreciation to the Montenegrin government for preparing the new Partnership Framework for Cooperation (CPF) for the 2025-2029 period, which was approved by the World Bank in September.
“The first project under the new CPF, the Development Policy Loan (DPL) of 80 million euros, was approved in October, marking a strong start to the implementation of this new strategy, which is based on the solid long-term partnership between the World Bank and the Government of Montenegro,” the statement reads.
Currently, in partnership with the World Bank, Montenegro is implementing projects in the fields of agriculture, rural development, fisheries, modernization of tax administration, energy efficiency improvement, and integrated development programs for the Sava and Drina river corridors, alongside additional investments aimed at facilitating trade and transport in the Western Balkans.
Minister Vuković highlighted that, out of the total value of ongoing joint projects amounting to 84.3 million euros, 61% of the funds have not yet been utilized, with some projects having been started as far back as 2018. He stressed that it is a priority for the government to intensify efforts to catch up on delays from previous years and meet the planned goals by effectively managing the available investments.
The Minister also pointed out that timely project implementation is of critical importance for the current government, particularly from the Ministry of Finance’s perspective, as unutilized funds result in additional costs, and it is essential to accelerate the disbursement of funds from existing loans.
Sheldon welcomed the Government of Montenegro’s intention to work even more efficiently on implementing existing projects and preparing new investment initiatives that will significantly contribute to the country’s reform agenda.
The meeting also confirmed that cooperation with the World Bank will continue through the new CPF for the next five years, which covers ambitious projects worth 350 million dollars. These projects focus on improving waste management, protecting water resources, forestry reform, promoting renewable energy sources, energy efficiency, and adapting to climate change while preserving natural areas. A particularly important project is the decarbonization initiative, which is expected to be concluded by the end of this year and will play a key role in the transformation of the energy sector and in meeting international commitments by 2030.
Minister Vuković noted that this strategy aligns with the government’s aspirations for inclusive growth, a green economy, and strong management of natural resources, which will improve the quality of life, public health, and Montenegro’s tourism potential.
During the constructive dialogue, alongside an analysis of the current status of joint projects, the next steps in cooperation were defined, with the clear goal of advancing Montenegro’s development. The meeting was attended by representatives of project teams and relevant ministries, who contributed to finding solutions for overcoming challenges in the implementation of investment projects supported by the World Bank.
