Summary of Water and Wastewater Services in Montenegro
Core Content
Montenegro's water and wastewater sector faces significant challenges in terms of infrastructure, efficiency, and financial sustainability. The country is part of the Danube River Basin and is an official candidate for EU membership, which has implications for its water policy and infrastructure development.
Main Challenges
- Infrastructure Investment: The second phase of Montenegro's national Master Plan requires €640 million in infrastructure investments over the next 15 years to comply with EU directives by 2030. This is nearly double the current investment level.
- Efficiency and Cost-Effectiveness: Water utilities suffer from overstaffing and high nonrevenue water levels, which impact operational efficiency. The average nonrevenue water rate is 59%, higher than the Danube regional average of 35%.
- Cost Recovery: Water utilities do not generate sufficient revenues to maintain and sustain infrastructure. Tariffs need to be reviewed according to sound cost recovery principles.
- Service Coverage: While urban areas have good access to piped water (91%) and sanitation (89%), rural areas lag behind. Only 18% of wastewater is treated, which is below the Danube regional average.
- Data Availability: Data on sector funding and spending are limited, which hinders medium-term trend analysis and informed decision-making.
- Equity of Access: Access to water and sanitation services is uneven across different population groups, particularly the poorest and minority populations.
Key Sector Indicators
| Indicator |
Value |
Year |
Danube Average |
Danube Best Practice |
| GDP per capita, PPP |
14,318 |
2013 |
16,902 |
n.a. |
| Population |
0.621 |
2013 |
8.451 |
n.a. |
| Poverty headcount ratio |
1.41 |
2011 |
1.65 |
n.a. |
| Local government units |
23 |
2014 |
1,987 |
n.a. |
| Average size of local government units |
27,017 |
2013 |
4,253 |
n.a. |
| Total renewable water availability |
- |
- |
7,070 |
n.a. |
Organization of Services
- Service Providers: There are 22 formal water service providers, all of which are municipal.
- Service Scope: Services cover water and sanitation.
- Ownership: Municipal.
- Geographic Scope: One to a few cities.
- Legal Framework: A water services law exists.
- Regulatory Framework: No single line ministry or regulatory agency for the water sector.
- Performance Indicators: Not publicly available.
- National Utility Association: Yes, the UVCG provides training and knowledge exchange activities.
Access to Services
| Indicator |
Value |
Year |
Danube Average |
Danube Best Practice |
| Piped water supply – average |
91% |
2011 |
83% |
100% |
| Piped water supply – bottom 40% |
87% |
2011 |
76% |
100% |
| Piped water supply – below $2.50/day |
72% |
2011 |
61% |
100% |
| Flush toilet – average |
89% |
2011 |
79% |
99% |
| Flush toilet – bottom 40% |
84% |
2011 |
70% |
98% |
| Flush toilet – below $2.50/day |
66% |
2011 |
54% |
100% |
| Connected to wastewater treatment plant |
18% |
2012 |
45% |
95% |
Performance of Services
| Indicator |
Value |
Year |
Danube Average |
Danube Best Practice |
| Water supply continuity |
23.8 hours/day |
2010 |
20 hours/day |
24 hours/day |
| Nonrevenue water |
59% |
2012 |
35% |
16% |
| Water utility performance index (WUPI) |
48 |
n.a. |
69 |
94 |
Financing of Services
| Indicator |
Value |
Year |
Danube Average |
Danube Best Practice |
| Operating cost coverage |
0.76 |
2012 |
0.96 |
1.49 |
| Average residential tariff |
0.67 €/m³ |
2012 |
1.32 €/m³ |
n.a. |
| Share of potential WSS expenditures over average income |
1.6% |
2011 |
2.6% |
n.a. |
| Average annual investment |
42 €/cap/year |
2012 |
23 €/cap/year |
n.a. |
Ongoing Reforms
- Administrative reforms are at a preparatory stage.
- The Public Administration Reform Strategy (2011-2016) outlines the need for reforms in the water sector.
- Objectives include full cost recovery and regionalization of service delivery to improve efficiency through economies of scale.
Sector Sustainability Assessment
| Indicator |
Value |
Danube Average |
Danube Best Practice |
| Sector Sustainability Assessment |
59 |
64 |
96 |
Future Plans
- Construction of 6 new wastewater treatment plants (totaling 485,800 population equivalent) is planned from 2014 to 2016.
- These investments will increase wastewater treatment capacity eightfold.
Conclusion
Montenegro's water and wastewater sector is in need of significant improvements in terms of infrastructure, efficiency, and financial sustainability. The country has a developing economy with regional disparities and faces challenges related to service continuity, nonrevenue water, and data availability. Ongoing reforms aim to address these issues through cost recovery and regionalization of services, with a focus on aligning with EU standards.
