The government intends to attract significant loans to implement over 30 capital projects—from modernizing healthcare and transportation to strengthening defense capabilities and digital infrastructure. The corresponding plan has already been submitted to parliament and covers both specific projects with designated lenders and initiatives whose funding will be approved over the next year.
According to authorities' estimatesThe total budget funding gap in 2026 will be approximately €710 million. To cover this gap, as well as to refinance existing debt and build up a financial reserve, the state plans to borrow record amounts.
The government allocates projects with and without creditors
The document provides for the division of all objects into two categories:
- projects for which creditors have already been identified;
- projects, the funding of which will be agreed upon in 2026 on a competitive basis.
The first list includes initiatives supported by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the World Bank and the Council of Europe Development Bank (CEB).
Among them:
- construction of a new prison in Mojkovac - 30 million euros;
- expansion of the waste management centre in Bijelo Polje – 20 million euros;
- modernization of the Bar – Golubovci railway line – 113 million euros;
- section of the Podgorica bypass road as part of the Bar-Boljare motorway - 100 million euros.
In addition, the plan includes projects in the areas of ecology, sustainable development, healthcare, education, broadband internet, and digitalization of the tax system.
The most expensive projects: medicine and digital infrastructure
The largest investment volumes are earmarked for projects for which lenders have not yet been identified. The most important of these is the construction of a new Clinical Center in Podgorica, estimated to cost €313 million. The project aims to significantly improve the quality of medical care and create a modern treatment facility for patients from across the country.
This block also provides funding for a national data center and disaster recovery system, which should increase the resilience of government information systems and ensure the protection of critical digital infrastructure.
Defense and security
Particular attention in the borrowing plan is given to strengthening the defense sector. The state plans to invest in:
- 75 million euros for the purchase of military equipment;
- another 75 million euros for the modernization of air defense systems;
- 100 million euros for the purchase of helicopters and a specialized aircraft for extinguishing fires.
These investments are justified by the need to improve emergency preparedness and modernize the army in accordance with international obligations.
Infrastructure and regional development
Loan funds will also be used for large-scale infrastructure projects across the country. Priorities include:
- development of the Velje Brdo district in Podgorica;
- modernization of water supply taking into account climate change;
- reconstruction and construction of roads;
- improving public infrastructure in several municipalities.
Individual projects will be implemented in the northern and coastal regions, which, according to the government's plan, should contribute to more balanced regional development.
Covering the deficit and refinancing the debt
In addition to investment projects, the state plans to borrow to stabilize the budget. This includes:
- up to 500 million euros to cover the 2026 budget deficit;
- up to 1 billion euros for refinancing existing debt obligations and strengthening financial reserves.
It is also planned to provide state guarantees in the amount of up to 171,95 million euros for the implementation energy projects, railway transport and power transmission systems.
Financial discipline and control
The government emphasizes that the borrowing program complies with constitutional and legal norms. The document details lending limits, public debt management mechanisms, and oversight of the use of funds.
According to government officials, borrowing is not viewed as a temporary measure, but as a strategic tool for stimulating economic growth, improving the quality of public services, and modernizing key industries.
Parliament is expected to consider the proposal in the coming months. If approved, implementation of these projects will begin as early as 2026, potentially significantly impacting Montenegro's landscape in the coming decade—from healthcare and transportation to defense and digital security.
Economists also point out that such large-scale borrowing will require strict oversight of spending efficiency and project transparency. Otherwise, the growing debt burden could put pressure on the budget in future years. The authorities, for their part, emphasize that the investments are strategic in nature and aimed at long-term growth and economic sustainability, as well as improving the quality of life.
