Montenegro Second Resilient Fiscal and Sustainable Development Policy-Based Guarantee (WB-P509681)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Montenegro
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 9, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Montenegro - Ministry of Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 447.64 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 471.20 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Sep 16, 2026

Disclosed by Bank Jan 5, 2026

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Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the program development objective is to support the Government of Montenegro to: (i) strengthen fiscal sustainability and (ii) enable sustainable development.

The proposed €160 million Policy-Based Guarantee (PBG) supports the authorities’ efforts to strengthen fiscal sustainability, enhance public-sector governance, and promote resilient, sustainable growth. The operation reinforces reforms that broaden the tax base, contain expenditure pressures, and institutionalize fiscal oversight through a new fiscal council, while also advancing the circular economy, climate resilience, and renewable energy development. By combining IBRD and MIGA guarantees to mobilize commercial financing—the first such blended guarantee in the ECA region—the operation helps smooth Montenegro’s debt-repayment profile while reducing refinancing risks, strengthening investor confidence, and helping lower borrowing costs.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The overall risk for this operation is moderate. Institutional capacity risks are substantial due to reform complexity and limited administrative capacity. All other risk categories are rated either moderate or low. Macroeconomic risk remains moderate given the uncertain global environment but is mitigated by the reforms supported through this PBG, which strengthens the revenue base, improve fiscal-risk management, and enhance the resilience of public finances.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Total Project Cost: US$ 471.20 million
Total World Bank Group Financing: US$ 447.64 million
Coverage: Loan Guarantee


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

World Bank
Bledi Celiku - Senior Economist

Borrower/Client/Recipient
Ministry of Finance

Implementing Agencies
Ministry of Finance

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works