Danilovgrad Municipal Infrastructure Project

cancelled

In December 2010, the Ministry of Finance of Montenegro and the Bank signed a loan agreement for an amount of up to EUR 5.35 million to finance the construction of a wastewater collection system and treatment plant and the modernisation of the water supply system in Danilovgrad. The water and wastewater system is operated by the municipally owned Water and Sewerage Company. The purpose of the Project is to address water and wastewater problems in Danilovgrad including inadequate coverage of the wastewater network, lack of treatment of wastewater before being discharged to the Zeta River and an extensive water distribution system lacking resilience and in relatively poor condition, resulting in a high level of non-revenue water. As the costs of the Project's components were higher than initially estimated, an increase of up to EUR 1.5 million is being considered by the Bank. The Project comprised two components: (1) modernisation and construction of water supply infrastructure and (2) wastewater collection and treatment infrastructure. Each sub-component of the water supply infrastructure has been completed, while implementation of the sewerage network and wastewater treatment plant is on-going. The loan increase will cover the updated costs of the: wastewater treatment plant, wastewater treatment plant odour control equipment and sludge transportation lorries.