NEWS ...

10. September 2007.


Loan agreement has been signed


After the conclusion of serial procedures and negotiations, which have been done with World Bank for the last two years, within the Sustainable Montenegrin Tourism Development Project, the main conditions for the beginning of realization of the construction of the regional water supply system from water source Bolje Sestre (the basin of Skadar Lake) for the Montenegrin coast  are achieved.


Particularly, on 28th of August 2007, The Financial Agreement and Project agreement were entered between the Government of the Republic of Montenegro, World Bank and PEW-MC.


The project will be implemented through two loan agreements. The first part of the loan is authorized and entered under the IDA conditions (the installment period of 20 years with grace period of 10 years), while the signing of the second part of loan with World Bank under the IBRD conditions is planned for the beginning of 2008. In the first phase of the project, the construction of the continental part of the Regional water supply system and the southern branch of the system for the Municipality of Bar is to be financed, while in the second phase the financing is planned for the extension of the Regional water supply system for the Municipality of Ulcinj and tourist area of Valdanos and Velika plaza. The northern branch of the Regional water supply system for the Municipalities of Budva, Kotor, Tivat i Herceg Novi will be financed by loan from the European Bank for Reconstruction and Development (EBRD), for which the negotiations will take place on the 13th and 14th of September 2007.


The implementation unit for these projects is PEW-MC, which after the construction will manage the Regional water supply system. Also PEW-MC in cooperation with the Government of the Republic of Montenegro provides local participation in the Regional water supply system project for the Montenegrin coast, whose approximately value is 54 million euros.


Apropos signing the Loan Contract for the financing of the MSTDP project, the World Bank office in Montenegro gave the following press release:



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