Montenegro’s significant water loss rate of 68% has highlighted a critical opportunity for utility efficiency improvements, prompting the government to pursue new financing from the World Bank. The funding initiative aims to support a comprehensive program estimated at around €200 million.
A financing request submitted on September 29 seeks approximately $39.84 million for the initial phase of the Water Security and Climate Adaptation program. This extensive initiative is projected to continue through the mid-2030s and will focus on rehabilitating water networks, expanding sewer systems, and enhancing rural and wastewater infrastructure.
The potential for investment is underscored by the country’s current operating inefficiencies. With an average of 68% non-revenue water, a substantial portion of the water entering municipal systems is lost due to leaks, inaccurate metering, or unbilled consumption.
This situation has created a demand for advanced solutions such as smart metering, leak detection, pressure management, hydraulic modeling, pumps, wastewater technology, and utility management software. By reducing these losses, Montenegro can effectively increase its available water supply without necessitating equivalent investments in new sources.
Moreover, enhancing utility efficiency could improve financial performance by increasing the revenue generated from produced water. The forthcoming program is anticipated to incorporate digital performance monitoring, allowing technology providers to play a significant role alongside traditional civil contractors.
Utilities will require detailed network data to identify where water enters the system, where it is consumed, and where losses occur. This need shifts part of infrastructure spending towards sensors, software solutions, and asset management platforms.
In addition to water supply issues, wastewater management represents another critical area for improvement, with less than half of generated volumes currently treated. This gap may drive investments in treatment facilities, pumping systems, and environmental monitoring in conjunction with drinking-water networks.
The World Bank is expected to review the first phase of financing later this year. For contractors in the region, the broader opportunities are likely to unfold over multiple investment cycles rather than through a singular tender process.
With a 68% water-loss rate, Montenegro’s most cost-effective solution may increasingly be in preventing further losses of existing water resources.
