Project description
and objectives:
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The proposed project is for a regional water supply scheme that will provide
potable water from Lake Skadar to the municipalities along the Montenegrin
coast. The EBRD will finance the northern branch of the regional water supply
system which will supply Budva, Tivat, Kotor and Herceg Novi. The World Bank
will finance the southern branch supplying Bar and Ulcinj.
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Transition
impact:
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The proposed project will contribute to the transition process by:
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commercialisation through introduction of commercial contracts between the
Public Enterprise for Regional Water Supply “Regionalni vodovod Crnogorsko
Primorje” and the local municipal water companies;
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tariff setting based on cost recovery principle;
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sector reform linked to KfW and USAID technical assistance programmes, which
already have yielded significant results in improved collection rates,
introduction of computerised billing and collection, and increased management
awareness of commercial and financial matters.
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The client:
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Public Enterprise for Regional Water Supply “Regionalni vodovod Crnogorsko
Primorje”, a state enterprise established for the purpose of providing bulk
water to the coastal municipalities in Montenegro.
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EBRD
finance:
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The EBRD is considering a loan of up to EUR 17.9 million.
The World Bank will provide a parallel loan of 9 million, which is part of a
larger multi-sector loan.
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Total project cost:
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EUR 51.7 million.
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Environmental impact:
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The project has been screened B/1.
This project presents significant environmental opportunities regarding
improvement of drinking water supply to Montenegro coastal region, reducing
the risk to public health and improving efficiency and reliability of the
water supply for the tows of Budva, Tivat, Kotor and Herceg Novi. The
environmental due diligence will assess the ability of the selected project to
bring the facilities into compliance with applicable national and EU
environmental standards. It will also review environmental issues associated
with current potable water production and distribution, as well as wastewater
collection and treatment facilities. ED is of an opinion that the available
financing might not be sufficient to bring all the operations of the future
Regional Water Company in compliance with EU standards. This refers to
sewerage collection and its treatment.
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Technical
cooperation:
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In support for the project, the TC funds are required for:
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assisting the Public Enterprise for Regional Water Supply “Regionalni vodovod
Crnogorsko Primorje” to establish commercial water sales contracts with the
local municipal water companies and
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project Implementation Support for Regional Water Supply “Regionalni vodovod
Crnogorsko Primorje”
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Radoslav Ralevic, Operation Leader: ralevicr@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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