World Bank Supports Waste Management Reform in Montenegro

WASHINGTON, March 27, 2026 - The World Bank's Board of Executive Directors today approved a €40 million loan to Montenegro to strengthen solid waste management and improve quality of life for communities while supporting a cleaner, more attractive business environment.

The Montenegro Waste Management Reform Project supports the government's efforts to modernize waste services, strengthen institutions, and align the sector with European Union (EU) standards. The project focuses on strengthening institutional capacity and improving solid waste services in selected municipalities. The project also supports capacity building at national and municipal levels.

These reforms will be supported by key infrastructure and remediation investments. The project will finance the construction of a Regional Waste Management Center in Nikšić, serving more than 75,000 people. The facility will support recycling, composting, and modern waste treatment, helping to reduce reliance on landfilling and moving toward higher recycling rates in line with EU requirements. The project will also finance the remediation of approximately 11 hectares of contaminated land at the former KAP industrial site in the Zeta Valley, reducing risks to public health and protecting groundwater and the Skadar Lake basin.

"This project supports Montenegro's efforts to deliver cleaner, more reliable waste management services while addressing long-standing environmental risks," said Christopher Sheldon, World Bank Country Manager for Bosnia and Herzegovina and Montenegro. "By strengthening institutions and investing in modern infrastructure, it helps support sustainable growth and closer alignment with European Union standards."

Project preparation was supported by a grant from the Grant Facility for Preparing Projects Trust Fund.