World Bank approves €33m loan to boost Montenegro’s fisheries, agrifood sector

The new Climate Resilient and Agrifood Sector Development Project aims to increase competitiveness, support rural livelihoods, and accelerate Montenegro’s progress on the EU accession path.

The World Bank’s Board of Executive Directors has approved a €33 million (US$38.76 million) loan to Montenegro to strengthen two key pillars of its economy—fisheries and agrifood production—by improving public services, modernizing critical infrastructure, and bringing national systems closer to EU standards.

The new Climate Resilient and Agrifood Sector Development Project aims to increase competitiveness, support rural livelihoods, and accelerate Montenegro’s progress on the EU accession path.

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Montenegro’s First Modern Fishing Port to Be Built in Ulcinj

A centerpiece of the project is the construction of Montenegro’s first modern fishing port at Cape Đeran–Velika Plaža in Ulcinj Municipality, a major tourism and coastal economy hub.

The port will feature:

• Cold storage and refrigeration facilities

• Ice production systems to maintain freshness and reduce post-harvest loss

• Packaging and distribution services to help fishers access higher-value markets

• Maintenance and repair facilities for fishing vessels

• Infrastructure designed to support climate resilience and reduce waste

These auxiliary systems are expected to significantly improve product quality, enhance market access, and increase income opportunities for Montenegro’s fishing communities.

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Strengthening Institutions for EU Alignment

The project will establish a Paying Agency Regional Office, a key institution for implementing the EU Common Agricultural Policy (CAP). This office will:

• Bring agricultural services closer to farmers

• Improve the efficiency of processing payments

• Support the rollout of the Integrated Administration and Control System (IACS)

• Ensure better monitoring of farm subsidy compliance

• Strengthen national capacity to manage rural development funds

The investment is a major step toward harmonizing Montenegro’s agricultural governance with EU directives.

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Building a Sustainable System for Animal By-Products

To improve environmental sustainability and public health, the project will help Montenegro create a comprehensive national system for safely collecting, processing, or disposing of animal by-products in line with EU regulations.

This component will modernize waste management in the agrifood sector, reduce environmental risks, and support compliance with veterinary and food safety laws required for EU market access.

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Institutional Reforms and Capacity Building

Alongside physical infrastructure, the project includes extensive institutional reforms and capacity-building programmes aimed at:

• Strengthening governance in the agrifood and fisheries sectors

• Improving service delivery for farmers and fishers

• Enhancing climate resilience and efficient resource management

• Supporting Montenegro’s transition to a more competitive, rules-aligned economy

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Strong Alignment with National and EU Priorities

World Bank Country Manager for Bosnia and Herzegovina and Montenegro, Christopher Sheldon, emphasized the project’s strategic importance:

“Investments in fisheries and the agrifood sector are essential to rural livelihoods and to Montenegro’s progress on the EU accession path. By modernizing critical public infrastructure and strengthening institutions, this project will help build a more resilient and competitive economy.”

The project aligns with Montenegro’s key national strategies, including:

• National Strategy of Sustainable Development until 2030

• Tourism Development Strategy 2022–2025

• Agriculture and Rural Development Strategy 2023–2028

All prioritize sustainable resource management, modernization of rural infrastructure, and strengthening high-value sectors.