Signed Contract on warranty for the second payment for the Project Regional water supply in Montenegro

Minister of Finance, dr Igor Lukšić, and Head of European bank for renewal and development (EBRD) office, Mr. Marek Lorinc, had signed the Contract of warranty for the second payment for the Project Regional water supply in Montenegro with the amount of 7 million euro, for construction of water supply system for municipalities Budva, Tivat, Kotor and Herceg Novi.

Executive director of JP Regionalni vodovod (public enterprise Regional water supply), Mr. Zoran Bošnjak, had also signed the Contract on credit with Head of EBRD office, Mr. Lorinc. The European bank for renewal and development had granted Montenegrin enterprise for regional water supply 15 million euro loan (in 2007 8 million euro, effective in 2008; in 2007 7 million euro, effective in 2009), with the purpose to support rehabilitation and construction of regional water supply system, which would provide drinking water from Skadar lake for the municipalities on Montenegrin seaside. The European bank for renewal and development shall finance rehabilitation and construction of northern part of the system, which will provide water supply for Budva, Tivat, Kotor and Herceg Novi, while the World Bank shall finance extraction of water from Skadar lake, its processing and construction of main, continental and Southern part of the network, to provide water supply for Bar and Ulcinj.

Project Regional water supply is of multiple importances for Montenegro and a significant prerequisite for economic development, especially having in mind that the tourism is leading growth sector in our country. Providing the safe and uninterrupted water supply at the seaside is of strategic importance for the country, and the Government of Montenegro had given it the highest priority, said the Minister of Finance, dr Igor Lukšić, when signing the contract on warranty. Mr. Marek Lorinc, Head of EBRD office in Podgorica said that the project shall help implementation of the main water supply system construction in Montenegro seaside implementation. By this program, the Bank supports to the main infrastructural needs in the state, which provides good chances for continuous growth in the sector of tourism, providing therefore the high class tourism opportunity, said Mr. Lorinc.