The Municipality of Plav is fully committed to welcoming investors who are ready to contribute to the development of our community, provided they respect our adopted planning and strategic documents, said Nihad Canović, Mayor of Plav, in an interview with Bankar.
“We believe that attracting credible investors is key to Plav’s future. Their presence can bring new momentum to our development, create jobs, strengthen the local economy, and help us better utilize our natural and economic resources,” Canović stated.
He emphasized that development in Plav must be planned, sustainable, and always in the interest of citizens.
“That’s why we’re looking for partners who share our vision of long-term and responsible growth—those who can recognize and enhance our existing strengths, such as natural beauty, tourism potential, agriculture, and other sectors. Investors who bring knowledge, experience, and a sense of responsibility will always find an open door in the Municipality of Plav,” said Canović.
What major projects do you plan to implement to improve the lives of residents? What are the most significant investments in the coming period?
Our focus is primarily on infrastructure, especially within the city center. Currently, construction is ongoing near the Plav bridge, on Omeragića and Šabovića streets, the city market, and the Home for the Elderly.
Soon, we plan to begin work on the road toward Završ and to construct a new street—Nova ulica—behind the city stadium. In addition to urban projects, we are heavily investing in rural infrastructure. Our goal is to ensure every household, no matter how remote, is connected by road.
We’re also upgrading the water supply and sewage networks, modernizing public lighting, and investing in schools, healthcare institutions, sports infrastructure, and cultural facilities. These investments are part of our vision of balanced development and improving the quality of life across the entire municipality.
What does the Municipality of Plav generate the most revenue from?
The largest portion of our own-source revenue comes from real estate taxes, property transfer taxes, various municipal fees, and charges related to the development and use of construction land.
A significant milestone was the transfer of sales tax administration from the state to the local government. Since this change, we’ve more than doubled our collections—evidence of more efficient municipal services.
Additionally, we’ve seen a rise in personal income tax revenues, which suggests an increase in employment across the municipality. Revenues from concessions have remained stable in recent years.
How is the capital budget planned to be implemented, and how realistic is it to expect full spending in 2025?
For 2025, we have allocated 46% of our total municipal budget to capital investments—a record share that demonstrates our strong commitment to development.
Given that the construction season is now underway and many field activities have already begun, we believe it is realistic to expect a high rate of budget implementation this year. Over the winter, we worked intensively on preparing detailed project documentation and establishing clear priorities, which allowed us to hit the ground running.
This preparation is key to avoiding delays and ensuring that all planned projects are completed within the set timeframe.
Rural and mountain tourism are essential to our economic development. They not only generate income but also create jobs, especially in remote areas. We’ve seen a steady increase in tourist numbers, particularly during the summer and winter seasons, as interest in active, nature-based vacations continues to grow.
Plav Lake is our main attraction—it’s Montenegro’s largest glacial lake and offers opportunities for fishing, boating, and swimming. Prokletije National Park, with its dramatic peaks and extensive trail network, is another major draw. Hridsko Lake—often called the “Lake of Happiness”—and Visitor Mountain are also very popular, as are our eco and ethno villages that offer authentic cultural experiences.
All these elements make Plav an emerging hub for sustainable tourism.
What role does the diaspora play in Plav’s economic development? How much have they invested recently?
The diaspora is a crucial pillar of our economy. Their investments and donations are vital for both public and private sector growth.
The largest ongoing investment from the diaspora is the construction of the Visitor Hotel, which will significantly boost our tourism capacity. Other notable projects include the reconstruction of the Plav Lake Hotel and multiple smaller investments in hospitality, retail, and lodging.
Over the last five years, the diaspora has consistently supported local initiatives, from infrastructure development to scholarships for students. Their contributions have a major impact, especially during the summer months when Plav’s population increases significantly.
What areas will receive the most funding in the 2025 municipal budget?
The biggest portion of the 2025 budget is dedicated to capital investments—in particular, road infrastructure, water and sewage systems, and public lighting.
At the same time, we’ve ensured a balanced approach by allocating significant funds to education, culture, sports, social protection, and youth support. We’re also continuing our assistance to vulnerable populations and working to improve municipal services and the efficiency of local government.
Our aim is for every citizen to see and feel the benefits of our budget through visible improvements and lasting results on the ground.
How much funding does the Municipality of Plav receive from the Equalization Fund?
In 2025, Plav has been allocated €1.9 million from the Equalization Fund. This fund is essential for small and less-developed municipalities, and currently, 18 out of 25 municipalities in Montenegro rely on it.
That said, the existing system needs reform. If we are serious about addressing regional inequality, the northand municipalities like Plav must receive increased support and more equitable resource distribution.
What is the current financial status of the Municipality of Plav?
The financial position of the Municipality of Plav is stable and sustainable. We meet all legal and financial obligations on time, including employee salaries and supplier payments.
We manage public finances responsibly, regularly settling credit obligations and tax duties. Despite limited revenues and broader economic challenges, we have managed to launch and maintain a wide range of development projects.
This careful financial planning is what enables us to remain stable, build trust, and continue moving toward our development goals.
(Bankar.me)
