The largest portion of the Capital City of Montenegro’s budget – 56.36%, or €86.08 million – is allocated for capital investments, said Podgorica Mayor Saša Mujović in an interview with Bankar.

He emphasized that this confirms the developmental nature of the budget, adding that €61.04 million, or 39.89%, is planned for current expenditures, while €5.89 million, or 3.84%, is allocated for debt repayment.

“The structure of the budget indicates the strategic focus of the city administration on investment and the improvement of communal and transport infrastructure, through responsible public finance management,” Mujović stated.

He added that Podgorica’s future is being built collectively through dialogue, mutual trust, and a clearly defined vision.

“That is precisely why our plans remain realistic, systematic, and aimed at creating better conditions for our fellow citizens,” said Mujović.

What is the largest budget allocation used for?

The largest share of the Capital City’s budget is allocated to capital projects, with local infrastructure taking center stage. A planned investment of €59.14 million is earmarked for the construction and reconstruction of roads, water supply and sewage systems, public lighting, green areas, parks, and more. Additionally, €12.5 million is allocated for the procurement of equipment and vehicles, and €8.15 million is planned for building construction. Furthermore, €6.3 million is allocated for investment maintenance.

This distribution of funds clearly reflects the city administration’s priorities – improving public service standards, modernizing urban systems, and creating a functional urban environment.

What are the most important items in the Capital City’s capital budget, and which projects do they include?

The 2025 capital budget of the Capital City amounts to €86.08 million – an increase of €15.67 million (22.25%) compared to the previous year. It is difficult to single out the most important investments due to the number of projects, but some notable ones include:

• Construction and rehabilitation of roads – total of €11 million (€5 million for construction, €6 million for rehabilitation)

• Equipment and vehicle procurement – total of €12.5 million (buses, municipal and emergency vehicles, tow trucks, fire trucks, tractors, mini excavators, and more)

• Construction of the city cemetery at Ćemovsko Polje – €2.2 million

• Investment in promenades and green spaces – €3.3 million (€2.35 million for parks and greenery, €670,000 for the Ljubović promenade, €300,000 for promenades along the Morača River)

• Reconstruction and adaptation of buildings – €3.48 million (€1.6 million for façades and roofs, €1.02 million for the Morača Sports Complex roof replacement, €250,000 for replacing the turf at the City Stadium, €230,000 for adapting the green market, €200,000 for adapting the truck market, €180,000 for repairs at the Pobrežje Shopping Center, etc.)

These investments address both infrastructure and social priorities, contribute to sustainable development, and enhance the functionality and aesthetics of public spaces.

Is the Capital City currently in debt, and are financial obligations being serviced regularly?

The Capital City does have obligations from previous debt, but is regularly servicing them without taking on new loans, which underscores responsible budget management. As of December 31, 2024, the total debt was €17,688,972.51, while guarantees provided for municipally-owned companies amounted to €2,198,778.68. Compared to the previous year, total debt was reduced by €3,741,352.99.

Are investors like Mohamed Alabbar welcome in Podgorica? What can Capital City offer to investors on this profile?

Investors like Mohamed Alabbar, who bring significant capital, global reputation, and experience in major development projects, are welcome in Podgorica. Their involvement can greatly contribute to economic growth, job creation, infrastructure development, and enhancing the city’s tourism potential.

Podgorica offers a strategic location, a stable institutional environment, and one of the region’s most competitive tax systems. The city administration is dedicated to efficient and transparent procedures, legal certainty, and open investor dialogue.

The local government supports sustainable projects aligned with the city’s development plans and that deliver long-term social and economic value. Podgorica is increasingly positioning itself as a city open to serious investment, with a clear pro-European orientation and a vision for modern urban development.

What are the most attractive sectors for investment?

The most attractive sectors for investment include:

• Manufacturing, especially processing industries (food, beverages, construction materials), has with potential for job creation, export growth, and local economic development.

• Tourism, focusing on cultural and historical heritage, natural resources, and sports/recreational facilities, enhances the city’s identity and international appeal.

• Information and Communication Technologies (ICT) as a key enabler for digital transformation, better public services, and a competitive startup and tech ecosystem.

These areas align with Podgorica’s strategic development vision.

What investment is considered most important for Podgorica in the coming period, and why?

Several capital investments planned for the near future will have a lasting and wide-ranging impact on Podgorica’s development. Strategically significant projects include:

• Construction of a central wastewater treatment plant, a national-level project that will improve environmental protection, public health, and alignment with EU ecological standards.

• Construction of a bioenergy plant to convert landfill biogas into electricity, contributing to sustainable waste management and energy efficiency.

• Reconstruction of the “Podgoričanka” building and development of the Business District, unlocking economic potential and modernizing city infrastructure.

• Reconstruction of Vojislavljević Boulevard, one of Podgorica’s busiest roads, to improve traffic flow and safety.

These projects reflect responsible resource management and a commitment to building a competitive, modern urban environment.

When will the promenade along the Morača River, from the Millennium Bridge to the bridge in Zagorič, be completed?

The Agency for Construction and Development of Podgorica is completing works on the promenade from the Russian Bridge to the Millennium Bridge. Preparations are underway for technical documentation and a public procurement process for designing the continuation of the Zagorič bridge.

The start of works depends on project completion, property-legal issues, and budget availability. The goal is to eventually connect the promenade along the Morača River entirely, enhancing public space and encouraging active lifestyles.

Are there plans for public garages, and where, given Podgorica’s parking shortage?

Yes, the city is preparing project documentation for several public garages, including underground garages at:

• Božane Vučinić Square

• Trg Golootočkih žrtava

• Naselje Prvi maj, Block G3

Additionally, two prefabricated garages are planned for Block 5, offering a quick increase in parking capacity in a high-traffic area.

These initiatives are part of a long-term, sustainable strategy to solve the parking issue while preserving public and green spaces.

When is the reconstruction of the “Podgoričanka” department store expected to start and finish?

The reconstruction of the former “NA-MA” (Narodni magazin) department store, now known as “Podgoričanka”, is a key project in revitalizing the city center. After lengthy legal proceedings, the building was transferred to the Capital City.

An international design competition selected a winning concept by a team from Argentina. Based on this concept, a design brief is being prepared, which will guide the Main Project development. The public call for the designer will follow, along with project development, revisions, permitting, and contractor selection.

It is too early to set precise deadlines, as timing depends on administrative and legal procedures. The city remains committed to ensuring the project aligns with legal and urban planning standards.

What is the estimated cost of the department store’s reconstruction?

The estimated cost will be known after the Main Project is finalized and reviewed. At that point, a bill of quantities and cost estimate will provide accurate figures. This approach ensures transparent and realistic budgeting.

What is your response to citizens who say the building, and others like it, are inappropriate for the city center?

We fully respect citizens’ concerns regarding the function and aesthetics of central city buildings. The former “NA-MA” department store has long been unused and neglected, diminishing the area’s appeal.

Now under city ownership, we can responsibly repurpose the space, preserving and transforming it in line with current needs while respecting its historical and urban significance. The goal is not demolition but revitalization – combining functionality and aesthetics with modern urban planning standards.

How do you plan to improve the quality of life in Podgorica, and what are your key goals before the end of your mandate?

The city’s development vision focuses on building a functional, sustainable, and inclusive urban environment. Key priorities include:

• Infrastructure development – road upgrades, adaptive traffic lights, pedestrian zones, and more parking

• Public transport improvements – new buses and free transport for specific groups

• Environmental protection – cleanliness, digitalized municipal services, wastewater, and energy projects

• Social support – investment in families, youth, the elderly, people with disabilities, and culture

• Digital transformation – better e-services for faster, more transparent administration