Montenegro

Ministry for Economic Development of Montenegro and UNDP presented joint projects

„We have discussed the year to come, which will be turned into a Year of Energy Efficiency, and the UNDP will take part in two out of seventeen projects that will be realized,“ said H. E. Mr. Branimir Gvozdenović, Minister for Economic Development. “Construction of new energy sources, small hydro power plants and activities that will connect those projects to other development goals are priorities,“ said Minister Gvozdenović. He pointed that the UNDP assists in establishing of the most adequate legal framework and tendering procedure for the small hydro power plant development that will be in compliance with the EU acquis, and their construction will not aim only at production of electricity but also at inspiring the entire economic development of Montenegro. According to Minister Gvozdenović those projects “will have higher importance in rural areas since they will be a stimulus for infrastructure development, employment, agriculture, tourism, and attention will be paid to ecology as well. „The projects in the areas of spatial planning and civil engineering are also very important for our economic growth. Good quality urban-spatial plans will be adopted in the coming period, and the UNDP has an important role in producing of legislation concerning the mentioned areas. The UNDP has taken the lead in partnership through support to development programs,“ Minister Gvozdenović explained.

Mr. Alexander Avanesov, UN Resident Coordinator and UNDP Resident Representative to Montenegro underlined that the first coordination meeting with the Ministry for Economic Development took place just two days after the Government of Montenegro and UNDP signed the Country Programme Action Plan. „This document is a business plan and a legal basis for implementation of UNDP programs from the Country Programme Document in Montenegro. The Country Programme Document addresses the key strategic goals of Montenegro in the upcoming years, one of which is the Sustainable Development with the focus on economic growth and environmental protection. In this field, where UNDP works on ensuring environmentally responsible economic development through sustainable planning and use of natural resources, our key partner is the Ministry for Economic Development. Our cooperation takes place within the two strategic areas- energy and spatial planning. „

Mr. Avanesov added that the UNDP provides advisory services for 11 Montenegrin municipalities in the areas of planning and development of planning documentation. „We will also assist more efficient management of natural resources,“ he said. „We believe conditions for exploitation of hydrological potential in economically attractive and environmentally sensitive and balanced manner will be created. Also, the UNDP provides energy efficiency audits for ProMonte Company and Hypo Alpe Adria Bank which will highlight how much energy these companies spend in their premises and guidelines on how to achieve eco-efficiency: save money through increased efficiency, and protect environment. We expect it to stimulate other companies, institutions and citizens to contemplate electricity saving in the same fashion,“ Mr. Avanessov concluded.

The presentation was attended by representatives of the Zoning Authority of Ljubljana Mr. Tilen Smolnikar and Ms. Janja Solomun, who talked about Slovenian experiences in developing of GIS database on the basis of zoning plans.

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In the area of energy, UNDP has taken the lead in providing technical assistance to the Ministry in the development of the small hydro power plant sector in Montenegro. Through a joint work, UNDP hopes to establish a framework for exploitation of Montenegro’s hydrological potential in a manner that is economically attractive and environmentally sensitive and balanced. Judging from the experience in the European Union, the balanced exploitation of the Montenegrin hydropotentials, which are predominantly located in its northern region are likely to lead to the increase in employment and living standards. 

In the area of spatial planning, UNDP provides advisory services to both central and local governmental level. On the local level UNDP is working with all northern municipalities (total of 11) and Cetinje on capacity building, technical assistance, and financing of the development of planning documentation- municipal spatial plans and general urban plans. In total UNDP’s support to the municipalities amounts to $600,000. On the central level, UNDP supports the Ministry for Economic Development in implementation of the new, recently adopted law on Planning and Construction, drafting and implementation of the relevant bylaws. UNDP will provide technical assistance in utilizing the Geographic Information System and the latest technologies in spatial planning that will enable a more efficient management of natural resources and urban planning. This in turn will lead to a more efficient production of the Planning documentation while ensuring clear and transparent procedure for issuing building permits, therefore alleviating business barriers, preventing corruption in development, and improving  implementation of the new Law. 

UNDP and the Ministry will achieve this through: a) establishing the most adequate legal framework and tendering procedure for the small hydro power plant development that will be in compliance with the EU acquis; b) supporting the involvement of the private sector through collating and maintaining all relevant information in one place based on which the investment decisions can be made (data- geological, hydrological, and ecological data on water streams); and c) strenghtening the capacity of the Ministry’s staff. 

In addition to both energy and spatial planning, GIS technology that UNDP has helped develop in Montenegro is continually used by different national, civil and academic institutions for more efficient management of natural resources. These include the Ministry for Tourism and Environmental Protection, the Ministry of Interior, the Ministry of Agriculture, Forestry and Water, the following institutions- Seizmological Institution, Hydrometorological, the Geological Institution, and Biotechnical.

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The joint portfolio of the Ministry for Economic Development and UNDP will be realized within the following year and a half, while it was arranged that the realization of the signed Country Programme Action Plan would be analyzed in joint meetings which will take place every three months.

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Out of total amount of funds, the Swedish International Development Cooperation Agency (SIDA) provided USD 2,5 million for the spatial planning programme, the Global Environment Facility (GEF) provided USD 1 million for the project ‘Power Sector Policy Reform to Promote Small Hydro Power Development in Montenegro’, while the UNDP contributed with 600.000 EUR to support northern municipalities in capacity development, technical assistance and financing of the development of planning documentation and municipal spatial plans.