National Parks of Montenegro (NPCG) plans to rebuild the Gradine complex in Plav as a tourism and education centre through a public-private partnership, as it cannot currently finance the investment alone. NPCG said the project covers a 7,120-square-metre site in Prokletije National Park, but its total cost has not yet been established. A private partner would manage commercial facilities while NPCG retained areas needed for park operations and work with visitors.
The planned multi-purpose building would include a restaurant and terrace, accommodation units, a souvenir shop, craft workshops and a room for presentations and education. The project also envisages space for the park’s Protection Service, along with facilities for recreation and outdoor stays. The mix is intended to serve visitors while providing space for activities related to management of the protected area.
Visitor facilities and park operations
The complex consists of a 708-square-metre main building and two auxiliary buildings. It was transferred to NPCG several years ago with the consent of Montenegro’s Ministry of Internal Affairs. The enterprise describes Gradine as a starting point for hikers and other visitors to Prokletije National Park.
Under the proposed model, the private partner would operate the commercial facilities, while NPCG would keep the areas needed by its Protection Service and for work with visitors. Some spaces, including the presentation room and craft workshops, could be used jointly. The division of responsibilities and the payment arrangements are among the matters to be assessed as the partnership is developed.
A former military border post, the Rifat Burdžović Tršo outpost, is located near the complex. The outpost was among those previously used to secure the state border. Gradine is also one possible entry point to a planned cross-border protected area linking Prokletije National Park with Bjeshkët e Nemuna National Park.
NPCG considers that the partnership could turn the complex into a sustainable tourism, hospitality and education centre, as well as a new visitor destination in Prokletije. The park is described as one of the Balkans’ most attractive and best-preserved mountain areas, with potential for sustainable development but infrastructure that remains insufficiently developed.
Feasibility work to establish investment terms
The overall investment is not yet known. It will cover reconstruction, fitting out the buildings, and the future costs of management and maintenance. The feasibility analysis is intended to establish the investment value and assess financial sustainability, as well as whether a public-private partnership is justified compared with other ways of delivering the project.
NPCG and consultancy ICL Montenegro signed a contract in mid-September for the analysis, worth 14,338 euros including VAT. The work was in its final stage. It is based on a main reconstruction design prepared several years ago, while the bill of quantities and cost estimate were recently updated and aligned with market prices.
The Municipality of Plav provided the funding to update the bill of quantities and cost estimate. Nihad Canović, president of the Municipality of Plav, recently met NPCG representatives and confirmed the municipality’s full support for the project.
The analysis is expected to propose how risks and obligations should be divided, the duration of a contract and a model for compensating the private partner. It will also assess the project’s financial sustainability and the case for choosing a partnership over other delivery options, while considering the public interest and environmental protection.
Montenegro’s Public-Private Partnership Law requires a public contracting authority to identify potential projects and prepare a proposal, a justification analysis and a draft contract. The documentation must be sent for opinions to the Agency for Investments of Montenegro, the Ministry of Finance and the Protector of Property and Legal Interests of Montenegro.
The Agency for Investments of Montenegro is working with NPCG and providing support for the project under the partnership model. Once the analysis is completed, NPCG plans to prepare a draft contract, take the next steps to select a private partner and start work. No partner has yet been selected, and the total investment remains subject to the analysis.
The project was presented in May at a panel discussion titled Montenegro, a homeland that brings us together, organised by the Ministry of Diaspora. The diaspora was identified as one of the possible partners. The presentation came as the project was being considered for delivery through a public-private partnership.
Funding constraints and park-wide plans
NPCG is pursuing a partnership because inherited financial obligations limit its ability to fund development projects. The enterprise said a substantial share of its own revenues continues to go towards those liabilities, despite having established financial discipline and restored stability to its operations.
As the burden of inherited obligations declines, NPCG expects to direct a larger share of its revenue towards developing the national parks. Until then, it plans to seek support and use different financing models for development projects. The enterprise has described public-private partnerships as a new approach in Montenegro’s protected areas, without an established formula or guarantee of success.
Tourism is not NPCG’s primary activity, although the national parks are attracting more domestic and foreign visitors. The enterprise says higher visitor numbers require movement to be directed and pressure on the most sensitive areas to be monitored and controlled. It also says that these measures are needed to preserve the values for which the parks are protected.
Gradine is part of NPCG’s programme to renovate deteriorating infrastructure and build new facilities in the national parks. Preparatory work has included identifying needs and priorities, preparing technical documentation, obtaining approvals and establishing partnerships. The enterprise plans investments intended to strengthen protection and field services, improve conditions for visitors and create opportunities for local communities.
NPCG plans to work with partners from Kosovo to establish a cross-border protected area linking Prokletije National Park and Bjeshkët e Nemuna National Park, following EUROPARC Federation standards. The proposed area would support coordinated management and promotion of the parks as a single destination, with Gradine among its possible entry points.
NPCG has said that nature protection is a basic condition for development and that other activities should contribute to preserving the parks’ natural and cultural values. The next step for Gradine is completion of the feasibility analysis, after which NPCG plans to prepare a draft agreement, proceed with the selection process and begin work.
