1. Priority Environmental Investment Programme National Workshop Montenegro Priority Water Projects on the PEIP List Budva, 13 th May 2008 Ruslan Zhechkov, REC rzhechkov@rec.org This project is financed by the European Commission.

2. www.rec.org Goals of the workshop Main beneficiaries: the PEIP list project proponents and other potential project proponents; Discuss issues that will help make progress with the project implementation; Review of the strategic context they operate in – EU and national level; Overview of the national priorities in the sector; Discuss reform of water utilities: reformed utilities have better chances of implementing viable projects; Preparation of bankable projects

3. www.rec.org Priority Environmental Investment Programme (PEIP) in Brief Supports national environmental investment planning in SEE; Sectors – air, water, waste: key investment-heavy directives Provides info to donor community and IFIs on environmental needs and priorities; status of environmental investment in the region; Helps develop a pipeline of projects through formulating environmental problems into bankable projects; Concrete activities: -Update of project lists; -National workshops; -Regional meetings; -Manuals;

4. www.rec.org Criteria for prioritization Strategic – linked to EU acquis, priority from national point of view, regional impact Geographical – hotspot, downtown Health and environment – population impacted Legal – settled ownership Technical – degree of technological modernity Social – public participation Economic and financial – co-financing: the more the better Project maturity – idea stage, feasibility study, implementation

5. www.rec.org Rehabilitation of Podgorica WWTP First phase of this project (1.7 MEUR), which included the reconstruction of existing WWTP system, has been finished. Total costs – 40 MEUR Funds not secured for 2 nd phase – 38.3 MEUR Environmental impact – Skadar Lake Feasibility study exists Soft loan is foreseen;

6. www.rec.org Construction of sewage system in the town of Tivat, and expansion and reconstruction of sewage system in the town of Kotor Split in 2; Tivat part started; Total cost – 16 MEUR; Kotor – 5.5 MEUR KfW credit and 0.75 MEUR own resources; Tivat - 2 MEUR KfW credit; Funds not secured: Kotor (3.9 MEUR); Tivat (3 MEUR) 70,000 will benefit; Pressure on the Adriatic Sea

7. www.rec.org Construction of new wastewater facility and reconstruction of the existing sewage system in Niksic Project scope expanded from upgrading existing WWT facility to to reconstructing the network and constructing new WWT facility as well; Total cost – from 4.5 MEUR (network) to 16 MEUR (incl. new WWT); 0.5 MEUR loan from EIB and 4 MEUR own funds for network; Own resources total – 9 MEUR; Funds not secured – 7 MEUR; Positive effects on Skadar Lake; Soft loan planned – 40% of total cost;

8. www.rec.org Proposed New Projects Construction of waste water treatment plant in Pljevlja: Total Cost:7.35 MEUR. Not secured: 7.35 MEUR

9. www.rec.org Thank you. For more information: Ruslan Zhechkov rzhechkov@rec.org Tel.: +36-26-504-000