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State grants water concession: Focus on bottling and Trebjesa brewery

Šta donosi novi plan koncesija?

Montenegro plans to open further opportunities for private investment in water resource usage through its 2025 Water Concession Plan, aiming to leverage one of its most valuable natural resources—water. The plan, developed by the Water Administration and published on the government’s website, includes an analysis of existing potential, legal frameworks, public interest, property issues, and investment feasibility.

Under Montenegrin law, any use of water beyond general consumption—such as bottling, industrial processes, or electricity production—requires a concession. For 2025, the plan outlines two specific concession initiatives.

The first involves the construction of a water bottling facility in Danilovgrad. The company Nature Technology, based in Bar, has proposed using one litre per second from the Komunica well for commercial bottling. The project, valued at over €2m, is expected to start operating in 2027 and create 25 new jobs. The facility will initially produce water in plastic and glass packaging, with plans to expand to mineral water and juices. The water source is deemed microbiologically safe, chemically stable, and free of industrial pollutants. The project is also expected to reduce bottled water imports, increase exports, and generate state revenue through taxes and concession fees.

The second initiative focuses on the extraction of underground water for the Trebjesa brewery in Niksic, one of Montenegro’s oldest and most recognised brands. The brewery intends to draw 35 litres per second from a well located within its factory premises. Before approval, hydrogeological studies must confirm the sustainability of the source. If successful, the concession would support capacity expansion and new job creation.

All concessions must be awarded through transparent public bidding processes, preceded by public consultation and formal government approval. The duration of a concession can be up to 30 years, or up to 60 years if approved by the Montenegrin Parliament.

Beyond economic benefits like job creation, export growth, and technology transfer, the plan emphasises environmental responsibility. Regulations require that water resources be used sustainably and without harming their natural function or quality. The plan is based on the Law on Concessions, the Law on Water, the Law on Financing Water Management, and several related bylaws that define usage conditions, fees, pollution standards, and economic criteria.

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