Montenegro is set to initiate a €40 million World Bank waste management project following an agreement with the state power utility EPCG, which will provide the former Željezara facilities in Nikšić for the establishment of a regional treatment center.
EPCG will grant the government free use of the former Livnica and Čeličana halls for 30 years, fulfilling the last institutional requirement necessary for the World Bank financing to take effect. The deadline for meeting this condition is October 1.
The World Bank approved funding for the Waste Management Reform Project earlier this year. The planned facility in Nikšić is projected to serve over 75,000 residents and will incorporate recycling, composting, and advanced waste treatment infrastructure.
The broader program also aims to remediate approximately 11 hectares of contaminated land at the former KAP industrial site. This agreement is crucial as it transitions the project from the approval phase to actual implementation.
Montenegro is facing significant investment needs in waste management due to EU accession, which raises environmental standards and increases the urgency to minimize landfill reliance. Utilizing existing industrial properties may help lower land acquisition costs and expedite preparation processes.
This initiative also repurposes part of the former Željezara complex, connecting brownfield redevelopment with environmental infrastructure. The project has the potential to create opportunities for companies specializing in engineering, equipment, waste processing, and environmental services once procurement activities commence.
However, operational challenges remain. Effective regional waste centers require consistent municipal waste flows, established tariff structures, and agreements among local governments. Merely building infrastructure will not resolve collection and recycling issues if municipalities continue to operate in a fragmented manner.
The World Bank program is expected to integrate construction efforts with necessary institutional reforms. For Montenegro, the immediate goal is to ensure the loan’s effectiveness. With the condition related to the Željezara property addressed, focus can now shift towards tenders and construction activities.
The €40 million funding is currently accessible. The next critical challenge will be whether the waste sector can effectively utilize these resources promptly enough to align with increasing EU compliance demands.
