The coastal municipality of Herceg Novi is embarking on a significant infrastructure and development initiative valued at approximately €120 million. This program encompasses various public investment projects that are either planned or already in progress, funded through Montenegro’s national capital budget. The investments aim to modernize transport infrastructure, public amenities, and utility systems while enhancing tourism along the Bay of Kotor.
Government officials indicate that this portfolio includes both ongoing efforts and new initiatives slated for the 2026 budget cycle. A primary focus is the completion of a new bus station in Herceg Novi, a long-awaited project anticipated to be operational before the upcoming tourist season.
The bus terminal is considered one of the most significant transport investments in the area in decades. The construction involves the main station building, passenger platforms, parking facilities, and supporting infrastructure, including a new access road linking the station to the city’s transport network. The total investment for the bus station project is estimated at around €10 million, covering the structure, equipment, and related road infrastructure.
In addition to the bus station, the broader investment program includes various infrastructure projects aimed at bolstering the municipality’s economic and tourism capabilities. Ongoing discussions between national authorities and municipal administration focus on improving road infrastructure on the Luštica peninsula, upgrading the regional water supply network, and expanding sewage and coastal facilities.
Among the largest planned initiatives is an Olympic-size swimming pool in Igalo, which will be financed through a collaborative investment model involving both the Government of Montenegro and the Municipality of Herceg Novi. This sports complex is expected to become a key public infrastructure project in the municipality over the next few years.
The investment program also addresses educational and heritage revitalization projects. Plans include converting the children’s department of the Igalo Institute into a school facility and restoring the historic Španjola fortress, which has been incorporated into the national capital investment plan.
Municipal officials highlight that this investment cycle aims not only at modernizing infrastructure but also at fostering long-term economic growth. By enhancing transport connectivity, public facilities, and utility systems, these projects are expected to strengthen Herceg Novi’s tourism economy while contributing to broader development within the Bay of Kotor coastal region.
The new bus station alone is projected to significantly enhance the city’s transport framework. By relocating the terminal and increasing capacity, this initiative should alleviate congestion on the main coastal road while creating a more efficient hub for regional and international bus traffic during peak tourist seasons.
Simultaneously, discussions are ongoing regarding additional infrastructure investments such as improvements to coastal promenades and wastewater management systems. These projects are deemed essential for upholding environmental standards and ensuring sustainable tourism development along Montenegro’s Adriatic coastline.
The €120 million investment cycle stands as one of the most substantial development programs currently active in Herceg Novi. Through coordinated municipal planning and national capital funding, these initiatives aim to enhance the city’s infrastructure base, expand tourism capacity, and modernize public facilities within a municipality that increasingly contributes to Montenegro’s coastal economy.
If executed as scheduled, this program is set to transform critical aspects of the city’s infrastructure over the coming years, positioning Herceg Novi to attract a larger share of tourism along the Adriatic while improving services and quality of life for local residents.
