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Friday, April 12, 2024
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Analysis of Montenegro’s capital budget: Reviewing Q1 expenditure and project progress

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In the initial quarter, the utilization of the capital budget amounted to 25 million euros, reflecting ten percent of the total designated amount. Within this expenditure, 4.2 million euros originated from credit funds, while two million euros were sourced from EU donations, based on data from the Ministry of Finance.

Comparing to the preceding year’s performance, which recorded 10.7 million euros or five percent, the execution rate nearly doubled, with the overall spending increasing two and a half times, according to the Ministry’s report.

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The Ministry outlined that Montenegro’s budget proposal for this year allocated funds totaling 240.01 million euros for the capital budget. This was aimed at facilitating the implementation of 332 projects or activities, collectively valued at 2.8 billion euros.

The Capital Projects Directorate was allocated 85 million euros to execute 254 projects (activities), representing 35 percent of the total capital budget for the year, as indicated in the document.

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During the first quarter of this year, the Capital Projects Directorate disbursed 14.7 million euros on projects, amounting to 16 percent of the total planned amount. This marked a four-fold increase compared to the same period last year, which saw an expenditure of 3.5 million euros.

The Directorate initiated public procurement procedures valued at over 27 million euros, including VAT, which are currently in the publication phase. Of these, 11 public procurement procedures worth around 7.7 million euros have already been announced. Notably, these include 3.95 million euros for the construction of a sports hall in Plužine and one million euros for the adaptation of dental offices in primary and secondary schools.

Furthermore, several contracts were concluded for the preparation and revision of project documentation, as well as for the execution of works and expert supervision over their implementation. Key contracts included the construction of a sports hall for the “Mrkojevići” Elementary School in Pečurice, Bar, amounting to 1.16 million euros, and the reconstruction of main high and low-pressure pipelines in Pliješ-Grad, also totaling 1.16 million euros.

The Traffic Directorate was allocated funds totaling 155 million euros, with 65 million euros designated for the implementation of 77 projects (activities). An additional 90 million euros were allocated for the Bar-Boljare highway, specifically the Mateševo-Andrijevica section, representing 38 percent of the total capital budget.

During the first quarter, the Traffic Directorate disbursed 10.3 million euros on projects, representing seven percent of the total planned amount. This was a three-million-euro increase compared to last year’s expenditure of 7.1 million euros. Notably, the ongoing development of project documentation for the Mateševo-Andrijevica highway section accounted for 11 percent of the planned amount for other projects besides the highway, showcasing a nearly identical spending trend compared to last year.

The Directorate initiated tender procedures for 21 public procurements valued at approximately 21 million euros during the first three months. These included 12.19 million euros for the reconstruction of the regional road Bar-Kamenički most-Krute, 1.2 million euros for the rehabilitation of the road section R10, Tomaševo-Pavino Polje, and 4.84 million euros for the investment resurfacing of asphalt pavement on highways and regional roads sections Podgorica, Nikšić, Pljevlja, Kotor, and Berane.

Monteput launched tender procedures in the first quarter for the preparation of conceptual designs and solutions for various highway sections. These included the Andrijevica–Berane–Boljare highway, Andrijevica–Peć highway section Andrijevica–Čakor, intersection of the Bar-Boljare highway with the Adriatic-Ionian highway and the fast road south, Crnča–Pljevlja–border with Bosnia and Herzegovina, and the fast road, crossing the Bay of Kotor.

Looking ahead, the completion of the Mateševo-Andrijevica section of the Bar-Boljare highway is a priority, with intensified efforts to secure financing and select contractors. This involves the European Bank for Reconstruction and Development (EBRD) and is expected to conclude by the end of the year.

In a bid to enhance regulatory and institutional frameworks for public investments, the Government has taken measures to establish the Council for Public Investments and develop the capital budget. Additionally, the Ministry of Finance has introduced a Register of Capital Projects financed from the state budget, integrated into the existing Budget Management Information System (BMIS).

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