Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

09 Dec 2003



PSD disclosed:

06 Oct 2003

Project Description

The proposed project will enable two airports in Montenegro to complete their modernisation plans, which will help them comply with the minimum levels of safety and services required by the International Civil Aviation Organisation (ICAO). The loan will support the finance of a new passenger terminal building, runway lightings, widening of the taxiways and the setting up of rescue and fire fighting units at both airports. It will also support the rehabilitation of the existing terminal building at Podgorica airport and the extension of the terminal building at Tivat airport.

Transition Impact

The air transport industry has been adversely affected by the rigidities of a command economy, conflict and ten years of economic isolation. This has resulted in under-funding, a severe shortage of equipment and spare parts and corporate inefficiencies. The project will tackle these issues in a number of ways. First by strengthening and improving air transport - a key sector for Montenegrin transportation capabilities - by upgrading its two principal airports to meet international standards and practices. Secondly, through various initiatives aimed at improving corporate capabilities and commercialising the air transport sector.

The Client

The Airports of Montenegro (APM) was established as a public company by the Government of the Republic of Montenegro on 22nd July 1999 to take over and manage airports in Montenegro. APM is 100% owned by the Government of the Republic of Montenegro. APM is financially independent and does not receive any budget subsidies.

EBRD Finance

A sovereign guaranteed loan of € 11 million, out of a total project of € 29 m co-financed with the European Investment Bank (€ 11.5 million). € 6.5 million will be provided by APM.

Project Cost

€ 29 million

Environmental Impact

The project has been screened B/1. APM has filled in the Bank's Environmental and Health & Safety questionnaire for Airports. The Bank has also arranged independent consultants to review the Urgent Rehabilitation Plan to ensure it meets the operational and technical requirements of ICAO and to propose environmental mitigation measures. The investigations carried out show that the project will result in some environmental improvements and no significant adverse impacts. The project will help APM meet ICAO standards of safety, enhance fire fighting and emergency response capacity and improve wastewater and storm water runoff management.
As a condition of the project, APM will adopt and implement an Environmental Action Plan, including the development of an environmental management system and measures for further environmental mitigation. The EAP will support the objective of APM's Master Plan to improve the environmental performance of its operations in accordance with national, EU and ICAO environmental, health and safety standards.

Technical Cooperation

  • Technical due diligence - EBRD French fund.
  • Assistance to project management and implementation - European Agency for Reconstruction.
  • Introduction of financial management system - USAID
  • Master plan for airports - USAID
  • Corporate strengthening, business planning towards greater commercialisation and involvement of private sector (TBD-TC Com approved on 24 September 2003).

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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