February 2011
Investments cont. The World Bank Finances the Construction of a Sanitary Landfill Site, Možura, in Montenegro The government of Montenegro and the World Bank signed a loan agreement which provides €4.5 million for the design and construction of the Možura domestic landfill site and the necessary equipment for its operation. The Možura domestic landfill site will be designed to collect waste from the municipalities of Bar and Ulcinj for the next 28 years. This loan agreement represents additional financing for the Montenegro Environmentally Sensitive Tourist Areas Project (MESTAP), which was approved by the World Bank’s Board of Directors in September 2003 to the amount of US$7 million. Additional financing for the project was approved by the World Bank’s Board of Directors on December 20th, 2010. The activities of the project will help to protect Montenegro’s beautiful costal area from threats posed by pollution from inadequate solid-waste collection and disposal systems. Additionally, having recently been granted candidate status for EU membership, the government of Montenegro has committed itself to the harmonization of its environmental standards with those prevailing in the EU. The selected landfill site is located at Možura in the Municipality of Bar, 17 km southeast of the city of Bar and 11 km northwest of the city of Ulcinj. The financing instrument would be an IBRD loan, repayable in ten years’ time, and would include a grace period of four years.
Montenegro Plans to Obtain a Loan Finance Improvements in the Treatment Infrastructure of its Water Supply
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The government of Montenegro will sign a loan agreement with the European Bank for Reconstruction and Development for the amount of up to €5.35 million. This loan will enable the Public Utility Company in Danilovgrad, a company fully owned by the municipality, to finance improvements in the infrastructure of the water supply, and also to develop the collection and treatment of wastewater in Danilovgrad. Although the company is managed adequately, a number of operational problems still exist: (i) high levels of technical losses due to prolonged underinvestment in the water supply infrastructure. (ii) high energy and maintenance costs for the water supply due to the poor physical condition of the water supply pipes (iii) urgent need for the rehabilitation of the
water supply and the construction of wastewater collection and treatment facilities. The existing company will be split into two new companies: 1) water and waste water company and 2) solid waste and other utility services by mid 2011. The overall objective of the assignment is to improve the company’s operational efficiency and financial management in order to improve and strengthen its capacity to provide high quality water and adequate sewage services.
British Cubus Lux and Spanish Sol Melia €250 million in Valdanos
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The Privatization Council gave the green light to begin the realization of one of the largest projects on the Montenegrin coast - the assignation of the long-term lease at Valdanos bay, with the option to extend for a further thirty years. The so-called ‘Ulcinj Pearl’ will be transferred to the British company Cubus Lux, which will build a 5-star hotel. The complex will, according to initial estimates, be worth around €250 million, and the construction of new facilities will require the employment of 1,000 workers. From an environmental point of view it is important that none of the olive tree in Valdanos are cut down and that an anti-fire protection system with hydrants is set in place.
EBRD to Lend €37 Million for the Completion of a Tourist Resort Complex at Sveti Stefan The European Bank for Reconstruction and Development has agreed to lend €37 million to help complete Montenegro’s most famous tourist resort complex at Sveti Stefan. The Greek-based shipping company Restis Group joined forces with the elite boutique hotel chain, Amanresorts, in 2009 to develop the complex whose redevelopment has moved slowly in recent years. Adriatic Properties, which is owned by Restis, is developing the resort. Amanresorts closed the Sveti Stefan island hotel in 2007 for renovation after winning a 30-year lease. It opened part of the famous hotel connected to the mainland via a land bridge earlier in 2010. Most of the EBRD funds will go toward developing a part of the complex on the mainland known as the Queen’s Beach Hotel.
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