Montenegro has commenced a new phase of rehabilitation at the Ulcinj Saltworks, focusing on protective infrastructure while preparing for a potential EU-funded initiative exceeding €15 million aimed at reviving commercial salt production. This project includes the construction of approximately 8 kilometers of protective embankments, with a contract valued at around €260,000 awarded to the Cetinje-based company SBCC.
The contractor has been allocated 45 days to complete these works. This project follows an earlier rehabilitation effort that involved about 6.6 kilometers of embankments and is part of a larger strategy to enhance water management at the site.
The investment is significant for both environmental preservation and commercial prospects. Salt production at Ulcinj ceased after the last harvest in 2013, leaving one of Montenegro’s major former industrial sites without its traditional economic activity. Restoring the embankments and water management infrastructure is crucial for any future production restart.
Moreover, the Saltworks holds considerable biodiversity value, particularly for migratory birds, necessitating a balance between industrial use and environmental protection in future developments. This dual role complicates the recovery process but may also improve access to European environmental and regional development funding.
Montenegro and the Municipality of Ulcinj have established a new management company with a structure where the state owns 60% and the municipality holds 40%. This arrangement provides a clearer institutional framework following years of uncertainty regarding ownership, management, and investment responsibilities.
Authorities, alongside environmental organizations, are preparing an IPA funding proposal that could exceed €15 million for further rehabilitation efforts. If approved, these funds would support additional water-control systems, infrastructure improvements, habitat protection, and necessary works for potentially restarting salt production.
While this funding is not yet secured, its scale indicates that the government is transitioning from emergency maintenance to a more extensive redevelopment program. The economic implications extend beyond salt production; a revitalized Saltworks could bolster tourism, environmental research initiatives, and local employment while reinstating production of a historically significant commodity.
Additionally, salt production may open avenues for premium food products and tourism-related branding rather than solely competing as a low-margin bulk commodity. However, establishing a commercially viable production model that aligns with environmental requirements poses a challenge.
Traditional salt production relies on meticulously controlled seawater movement through evaporation basins. This hydrological system also sustains the habitats that contribute to the ecological significance of the Saltworks. Thus, rehabilitation efforts must integrate conservation with commercial objectives.
This integrated approach might ultimately benefit the site as European funding increasingly favors projects that merge biodiversity protection with climate resilience and local economic development. The Ulcinj Saltworks could be positioned as such an investment opportunity.
The immediate €260,000 embankment contract is relatively modest compared to the proposed EU program but plays a critical role in restoring essential infrastructure after years of neglect. Without effective embankments and regulated water levels, both bird habitats and industrial salt production cannot be reliably managed.
The next significant challenge lies ahead: Montenegro must convert the proposed €15 million-plus program into an approved financing package while defining a feasible commercial model for the site. Success in these areas could transform the Saltworks from a longstanding conservation issue into a valuable mixed-use environmental and industrial asset.
The ongoing rehabilitation represents an essential first step in this process, with future developments determining whether salt production will resume in Ulcinj.
