Since the beginning of its activities in Montenegro, the European Bank for Reconstruction and Development (EBRD) has signed about 60 various projects with a cumulative investment volume of €575m, for total investments above €1bn.
The head of the EBRD’s office in Montenegro, Jaap Sprey, said that almost half of these investments were in the energy sector, a quarter in infrastructure, about 15% in the financial sector and just over 10% in private, mainly in the industry and agro-industry.
“We have supported over 580 small and medium-sized enterprises through the Small Business Council programme,” Sprey said in an interview with Mina-business news agency.
He said that the bank expected Montenegrin economy growth to reach 3.3%.
“It will be mainly driven by investments in transport, where the key project is the construction of the Bar-Boljare highway priority section, as well as by the leading foreign direct private investments, especially in the tourism sector,” Sprey said.
According to him, there will also be significant risks, related to the possible exceeding budget for the highway project, as well as the country’s vulnerability to external shocks.
Asked whether the business environment in Montenegro is attractive to foreign investors, Sprey said that Montenegro was the most advanced country in the region when it comes to progress in EU integration.
“The country became a member of NATO, and this was indeed an important milestone and recognition on the road to the EU. Business-friendly legislation in Montenegro and openness to foreign investors put it at the top of the regional list of countries in terms of foreign direct investment per capita,” he said.
According to Sprey, last year the EBRD was productive, given that they had signed seven projects.
“We provided €18.1m for the Montenegrin Power Distribution System (CEDIS) to complete the project of installation of smart electric meters. As a result, Montenegro will soon be among the European countries with the highest per cent of electricity consumers covered with smart metres, which brings significant benefits in terms of operational and resource efficiency,” Sprey said.
Other projects financed by EBRD loans include reconstruction of the roads of Rozaje-Spiljana, Tivat-Budva and Podgorica-Danilovgrad; expanding three shopping centres, including Podgorica-based Delta City; loans to Hipotekarna Banka and Alter Modus for micro financing; expanding MPM Cosmetics retail chain. EBRD also extended the loan agreement €30m guarantee with the Deposit Protection Fund.
