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<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong><br />

<strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong> (<strong>IPF</strong> <strong>TA</strong>)<br />

EuropeAid/128073/C/SER/MULTI<br />

Sub project:<br />

WB4-MNE-ENV-12B: Management models and options<br />

for cost recovery for the future construction and operation<br />

of regional landfills in Montenegro (Case Study<br />

for Nikšić)<br />

Institutional Review Report (Activity 2)<br />

May 2012


Project Office<br />

Deĉanska 5, 1st floor<br />

11000 Belgrade<br />

Serbia<br />

Tlf. 45 97 22 11<br />

E-mail xxxx<br />

web COWI-ipf.com<br />

COWI A/S<br />

Parallelvej 2<br />

DK-2800 Kongens Lyngby<br />

Denmark<br />

Tlf. +45 45 97 22 11<br />

Web www.cowi.com<br />

The European Union's 2008 IPA Programme for Albania,<br />

Bosnia and Herzegovina, Croatia, the former Yugoslav<br />

Republic of Macedonia, Montenegro, Serbia, Kosovo (under<br />

UNSCR1244/1999), Turkey and Iceland<br />

<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong><br />

<strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

(<strong>IPF</strong> <strong>TA</strong>) Western Balkans<br />

EuropeAid/128073/C/SER/MULTI<br />

Sub project:<br />

WB4-MNE-ENV-12B<br />

Management models and options for cost<br />

recovery for the future construction and<br />

operation of regional landfills in Montenegro<br />

(Case Study for Nikšić)<br />

Institutional Review Report (Activity 2)<br />

FINAL<br />

May 2012<br />

Document no. WB4-MNE-ENV12B_TECH_Activity 2 Report<br />

Version 2<br />

Date of issue 31 May 2012<br />

Prepared Srna Sudar, Zdenka Ivanovic, David Toft<br />

Checked Dr Merih Kerestecioğlu, Ayşe Çiğdem Arslancan, David Toft<br />

Approved Dr Merih Kerestecioğlu


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

i<br />

Table of Contents<br />

1 Executive Summary 6<br />

2 Report Overview 10<br />

3 Introduction 12<br />

4 Institutional and Legal Review 14<br />

4.1 Institutional set-up at national level 14<br />

4.2 PROCON 16<br />

4.3 National policy framework 18<br />

4.4 Relevant national legislation 26<br />

4.5 Institutional set-up at local level 36<br />

4.6 Development needs 39<br />

5 Waste Generation in Nikšić Area 41<br />

5.1 Review of national economic development<br />

parameters 41<br />

5.2 Review of forecasts for waste generation 42<br />

6 Case Study Nikšić 49<br />

6.1 Nikšić 49<br />

6.2 Plužine 52<br />

6.3 Šavnik 54<br />

6.4 Regional landfill for Nikšić, Šavnik and Plužine 56<br />

6.5 Sources of financing 57<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

ii<br />

List of Tables<br />

Table 1 Other institutions in solid waste management in<br />

Montenegro ................................................................................. 16<br />

Table 2 Economic indicators of Montenegro, 2012 ................................. 41<br />

Table 3 Population and waste generation of the Nikšić catchment<br />

area, 2004 .................................................................................... 43<br />

Table 4 Generated amounts (t/year) of municipal waste for Nikšić,<br />

Pluţine and Šavnik, from 2004 to 2009 ...................................... 44<br />

Table 5 Total amount of waste in Nikšić, Pluţine and Šavnik, in<br />

tons, 2010-2029 .......................................................................... 44<br />

Table 6 Total amount of waste generated, in tons, 2010-2029 ................ 45<br />

Table 7<br />

Total amount of waste generated, disposed and recycled<br />

from 2010 to 2029....................................................................... 45<br />

Table 8 Population of Nikšić, Pluţine and Šavnik, 2007-2029 ............... 46<br />

Table 9 Population by municipality and settlement type ......................... 46<br />

Table 10 Waste generation forecast, 2013-2030 ........................................ 47<br />

Table 11 Key data on Nikšić ...................................................................... 49<br />

Table 12 Basic data on Nikšić PUC ........................................................... 51<br />

Table 13 Key data on Pluţine .................................................................... 52<br />

Table 14 Basic data on Pluţine PHUC ...................................................... 53<br />

Table 15 Key data on Šavnik ..................................................................... 54<br />

Table 16 Data on Šavnik PUC ................................................................... 55<br />

Table 17<br />

Table 18<br />

Table 19<br />

Table 20<br />

SWOT Analysis for the North Region (Pluţine, Šavnik),<br />

strengths and weaknesses ............................................................ 69<br />

SWOT Analysis for the North Region (Pluţine, Šavnik),<br />

opportunities and Threats ............................................................ 70<br />

SWOT Analysis for the Central Region (Nikšić), strengths<br />

and weaknesses ........................................................................... 71<br />

SWOT Analysis for Central Region (Nikšić), opportunities<br />

and threats ................................................................................... 72<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

iii<br />

List of Figures<br />

Figure 1 Organisational chart of PROCON .............................................. 18<br />

Figure 2 Organisational chart of the Municipality of Nikšić .................... 50<br />

Figure 3 Organisational chart of the Municipality of Pluţine ................... 53<br />

Figure 4 Organisational chart of the Municipality of Šavnik .................... 55<br />

List of Annexes<br />

Annex 1<br />

Annex 2<br />

Annex 3<br />

Annex 4<br />

Main Legal Acts of PROCON<br />

Legal Acts Reviewed for Legislative Framework<br />

Secondary Legislation<br />

SWOT Analysis on the Regions in Montenegro<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

iv<br />

List of Abbreviations<br />

EC<br />

EIB<br />

<strong>IPF</strong><br />

MNE<br />

MoSDT<br />

PROCON<br />

PUC<br />

<strong>TA</strong><br />

ToR<br />

EPA<br />

IPPC<br />

EU<br />

EIA<br />

GoM<br />

IFI<br />

EUR<br />

NSSD<br />

MSSD<br />

NPI<br />

WI<br />

WEEE<br />

RoHS<br />

PCB<br />

PCT<br />

BoT<br />

PPP<br />

CRPS<br />

European Commission<br />

European Investment Bank<br />

<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong><br />

Montenegro<br />

Ministry of Sustainable Development and Tourism<br />

National Project Implementation Unit in the Field of Communal<br />

Services and Environment<br />

Public Utility Company<br />

<strong>Technical</strong> assistance<br />

Terms of reference<br />

Environmental Protection Agency<br />

Integrated pollution prevention and control<br />

European Union<br />

Environmental impact assessment<br />

Government of Montenegro<br />

International finance institute<br />

European currency<br />

National Strategy for Sustainable Development<br />

Mediterranean Strategy of Sustainable Development<br />

National Program for Integration<br />

Waste Incineration (Directive)<br />

Waste Electrical and Electronic Equipment (Directive)<br />

Restriction of Hazardous Substances (Directive)<br />

Polychlorinated biphenyls<br />

Polychlorinated terphenyls<br />

Build, operate, transfer<br />

Public private partnership<br />

Central Register of business organizations<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

v<br />

MONS<strong>TA</strong>T<br />

PHUC<br />

RM<br />

WTN<br />

SME<br />

MoF<br />

WBIF<br />

Statistical Office of Montenegro<br />

Public Housing and Utility Company<br />

Republic of Montenegro<br />

Waste Transfer Note<br />

Small and medium size enterprises<br />

Ministry of Finance<br />

Western Balkans Investment Framework<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

6<br />

1 Executive Summary<br />

1.1 English version<br />

The current document constitutes the Institutional Review Report (Activity 2)<br />

of the project “Management models and options for cost recovery for the future<br />

construction and operation of regional landfills in Montenegro (Case Study for<br />

Nikšić).” The report is divided into the following sections:<br />

<br />

<br />

<br />

<br />

<br />

Overview of the Report (Chapter 2) – lists the issues to be addressed in<br />

the report, as well as the presents the objective of the report, which is to<br />

examine what future solutions for procurement and operations are<br />

available under the current legal and institutional framework, as well as<br />

provides some initial indications of the condition of the municipalities<br />

and PUCs that will be involved in the regional landfill scheme. In this<br />

sense, it provides some basic inputs into the Activity 3 Report. Otherwise,<br />

however, the current report does not affect the outputs of the Activity<br />

3 and 4 Reports.<br />

Introduction (Chapter 3) – provides an introduction to the report, including<br />

the main principles of solid waste management in the Montenegro.<br />

Institutional and Legal Review (Chapter 4) – covers the institutional<br />

set-up at the national level, as well as the national policy framework<br />

and relevant national legislation with respect to solid waste management,<br />

the institutional set-up at the local level, and development needs<br />

in the sector.<br />

Waste Generation in Nikšić Area (Chapter 5) – reviews the forecast for<br />

waste generation in the Nikšić Service Area for solid waste management.<br />

Case Study on the Nikšić Service Area (Chapter 6) – presents the basic<br />

information on solid waste management in the Nikšić Service Area, the<br />

proposed regional landfill, and financing of the solid waste management<br />

sector, in particular with respect to landfill operation, closure, and<br />

post-closure aftercare.<br />

The institutional set-up for solid waste management is fairly typical: the national<br />

government sets the policy objectives for the development of the sector,<br />

while the local governments function as the regulators of the services at the local<br />

level, including with respect to tariff-setting and establishing minimum service<br />

levels. The typical service provider of solid waste management is a multipurpose<br />

public utility company (PUC). The relationship between the local government<br />

and the PUC is governed by a PUC statute and local decision accord-<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

7<br />

ing to which solid waste collection and disposal is assigned to the PUC. Performance-based<br />

contracts, by which a commercial relationship is established<br />

between the local government and PUC, are not used.<br />

According to the legal set-up for solid waste management in Montenegro, an<br />

inter-municipal company can be established for solid waste management and<br />

landfill operations. This is the case in the Nikšić Service Area, although the<br />

company Budoš essentially exists only on paper until such time as the regional<br />

landfill is constructed. In addition, all forms of public sector participation are<br />

permitted under the law. This means that the report for Activity 3 (Procurement<br />

Options Report) should consider all public-private partnership type options for<br />

the landfill construction and operation.<br />

There are several areas of development needs for the solid waste management<br />

sector, as listed below:<br />

• Continued harmonisation of laws – in particular the “Law on waste management”<br />

with the Directive on Waste 2008/98/EC is needed, in particular<br />

with respect to the hierarchy of waste, extended producer responsibility,<br />

preparation for reuse, recycling, biodegradable waste, content of local<br />

waste management plans, prevention of waste generation, etc.<br />

• Local capacity for planning and management of waste collection and landfills<br />

– there remains one regional landfill in the country and experience in<br />

landfill management is limited. Capacity development programmes for local<br />

governments, PUCs, regional landfill companies, etc. are needed.<br />

• Support to local governments and PUCs in the calculation of tariffs for<br />

solid waste collection and disposal.<br />

• Financial support to municipalities in the construction of regional landfills,<br />

as well as support in implementing cost covering tariffs for solid waste collection<br />

and treatment services. Financial support for care of landfills after<br />

their closure should also considered since according to the Law on waste<br />

management, this is the responsibility of the local government (and not the<br />

landfill operator, as in the Landfill Directive).<br />

1.2 Sažetak<br />

Ovaj dokument predstavlja Izvještaj o institucionaloj organizaciji u okviru projekta<br />

“Modeli i opcije upravljanja za povraćaj troškova buduće izgradnje i rada<br />

regionalne deponije u Crnoj Gori (Studija sluĉaja za Niksic)”. Izvještaj je podijeljen<br />

u sledeća poglavlja:<br />

• Kratak pregled Izvještaja (Poglavlje 2) – navode se sva pitanja koja su<br />

ovim Izvještajem obuhvaćena, kao i sam cilj Izvještaja, a to je da se uvidi<br />

koje opcije nabavke i rada su moguće u okviru postojećeg institucionalnog<br />

sistema i zakonodavstva u zemlji, kao i da da inicijalne naznake o uslovima<br />

u Opštinama i njihovim komunalnim preduzećima koja će biti<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

8<br />

ukljuĉena u rad buduće regionalne deponije. Uzimajući ovo u obzir, ovaj<br />

Izvještaj daje uvod u Izvještaje koji će pokriti aktivnosti 3 i 4 projekta.<br />

• Uvod (Poglavlje 3) – daje uvod u Izvještaj, ukljuĉujući glavne principe<br />

upravljanja ĉvrstim otpadom u Crnoj Gori.<br />

• Institucionalni i pregled zakonodavstva (Poglavlje 4) – daje pregled insitucionalne<br />

organizacije na nacionalnom nivou, kao i nacionalni zakonodavni<br />

okvir, s osvrtom na relevantnost za oblast upravljanja otpadom, zatim<br />

institucionalnu organizovanost na lokalnom nivou i razvojne potrebe<br />

sektora.<br />

• Generisanje otpada na podrucju Nikšića (Poglavlje 5) – daje pregled oĉekivanog<br />

generisanja /koliĉine otpada u servisnom podruĉju Nikšića.<br />

• Studija sluĉaja za servisno podruĉje Nikšića (Poglavlje 6) – daje pregled<br />

osnovnih informacija o upravljanju ĉvrstim otpadom u servisnom podruĉju<br />

Nikšića, o regionalnoj depoiniji i finansiranju sektora upravljanja otpadom,<br />

s posebnim osvrtom na rad deponije, njeno zatvaranje, i odrţavanje nakon<br />

zatvaranja.<br />

Institucionalna organizacija sistema za upravljanje ĉvrstim otpadom je manjeviše<br />

tipiĉna: Vlada donosi politike i ciljeve za razvoj sektora, dok lokalne<br />

samouprave imaju funkciju organizacije i sprovoĊenja tog servisa na lokalnom<br />

nivou, ukljuĉujući uspostavljanje tarifa i ustanovljanja minimuma usluge. Ovu<br />

vrstu usluge na lokalnom nivou, tipiĉno izvršava Javno-komunalno preduzeće<br />

(JKP), koje ima više uloga. Odnos izmeĊu lokalne samouprave i JKP je<br />

ustanovljen u Statutu JKP i Odluci o osnivanju JKP, kojom su poslovi<br />

sakupljanja i odlaganja ĉvrstog komunalnog otpada dodijeljeni JKPu. Ugovori<br />

na bazi rada i dostignuća preduzeća, izmeĊu lokalne samouprave i JKP se ne<br />

koriste.<br />

U skladu sa pravnim okvirim za upravljanje ĉvrstim otpadom u Crnoj Gori,<br />

moguće je osnovati meĊu-opštinsko preduzeće za upravljanje ĉvrstim otpadom<br />

i deponijom. Ovo je sluĉaj i u servisnom podruĉju Nikšića, iako kompanija Budoš<br />

u stvari postoji samo na papiru sve dok se regionalna deponija ne izgradi.<br />

Dodatno, svi vidovi uĉešća javnog sektora su dozvoljeni u okviru postojećeg<br />

pravnog okvira. U skladu sa tim, Izvještaj za aktivnost br. 3 projekta (Opcije<br />

nabavke) treba da uzme u obzir sve vidove javno-privatnog partnerstva za<br />

izgradnju i upravljanje deponijom.<br />

Postoji potreba za razvojem u nekoliko oblasti u sektoru upravljanja ĉvrstim<br />

komunalnim otpadom.Oblasti, tj. potrebe su navedene u nastavku:<br />

• Kontinuirana harmonizacija zakonodavstva– posebno je potrebno dalje<br />

usklaĊivanje “Zakona o otpadu” sa Direktivom o otpadu 2008/98/EC, s<br />

osvrtom na hijerarhiju u upravljanju otpadom, produţena odgovornost proizvoĊaĉa,<br />

priprema za ponovnu upotrebu, recikliranje, biorazgradivi otpad,<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

9<br />

sadrţaj lokalnih planova upravljanja otpadom, prevencija generisanja otpada,<br />

itd.<br />

• Kapacitet na lokalnom nivou za planiranje i upravljanje sakupljanja otpada<br />

i upravljanja deponijom – postoji jedna regionalna deponija u zemlji, i<br />

iskustvo u oblasti upravljanja je ograniĉeno. Programi izgradnje kapaciteta<br />

lokalnih samouprava, JKPa, kompanija koje bi upravljale regionalnom deponijom,<br />

itd. je nadasve potrebno.<br />

• Podrška lokalnim samo-upravama i JKPima u kalkulaciji i uspostavljanju<br />

tarifa za sakupljanje i odlaganje ĉvrstog otpada je neophodno.<br />

• Neophodna je finansijska podrška opštinama za izgradnju regionalne deponije,<br />

kao i u sprovoĊenju tarifa koje pokrivaju troškove za sakupljanje i<br />

odlaganje ĉvrstog komunalnog otpada, i za njegovu obradu/preradu. Finansijska<br />

podrška za odrţavanje deponije nakon njenog zatvaranja se treba<br />

uzeti u obzir, jer Zakon o otpadu nalaţe da je ovo odgovornost lokalnih<br />

samouprava (ne onoga ko upravlja deponijom, kao što nalaţe Direktiva o<br />

deponijama).<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

10<br />

Scope<br />

2 Report Overview<br />

This report constitutes the output of Activity 2 – Review of the current<br />

institutional set-up for waste management and review of case study of Nikšić<br />

landfill. According to the Terms of Reference (ToR), this report should cover<br />

the following issues:<br />

• Review the existing institutional set up in Montenegro at State and Local<br />

Government level concerning solid waste management. The relevant policies,<br />

functions, capacities and development needs will be evaluated.<br />

• Review institutional set-up of municipal utility companies (PUCs).<br />

• Review current plans for the formation of inter-municipal operational institutions,<br />

if any.<br />

• Review national and regional economic development parameters;<br />

• Based on existing studies, review forecasts of waste generation in the area<br />

for the lifetime of the landfill.<br />

• Review current and forecast legislation with respect to waste generation –<br />

the relevant Montenegrin laws and regulations, as well as EU Directives<br />

that might impact the total volume, such as the required reduction of landfill<br />

of biodegradable waste and packaging waste.<br />

• Discuss available external sources of financing and financial costs, as well<br />

as financial security or any other equivalent to be provided by the operator<br />

as described in the requirements of Council Directive 1999/31/EC.<br />

• Prepare case study on Nikšić, including:<br />

- review and evaluation of functions of company (-ies) in charge of<br />

waste management in Nikšić, including: planning, operations, financial,<br />

commercial, administration and monitoring. The analysis shall<br />

assess the current status of the organization, and suggest needs for development<br />

and strengthening, taking into consideration the future role<br />

of the organization as the owner of the regional facility.<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

11<br />

- review and evaluation of companies in charge of waste management<br />

in Pluţine and Šavnik.<br />

Objective<br />

This report basically stands alone from the other reports on the procurement<br />

and operations options (Activity 3 Report) and the tariff models report (Activity<br />

4 Report). It serves, however, to examine what future solutions for procurement<br />

and operations are available under the current legal and institutional framework,<br />

as well as provides some initial indications of the condition of the municipalities<br />

and PUCs that will be involved in the regional landfill scheme. In<br />

this sense, it provides some basic inputs into the Activity 3 Report. Otherwise,<br />

however, the current report does not affect the outputs of the Activity 3 and 4<br />

Reports.<br />

.


<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and<br />

Operation of Regional Landfills in Montenegro<br />

12<br />

Waste management<br />

framework in MNE<br />

National Waste<br />

Management Plan<br />

Law on Waste<br />

Management<br />

Key principles<br />

3 Introduction<br />

Over the past decade, Montenegro has made efforts to establish a waste management<br />

framework in the country. Based on past experience, current policy is<br />

that solid waste management must be an integral part of environmental protection<br />

policy and actions. In this respect Montenegro, is still in the process of establishing<br />

a legislative and institutional framework that will ensure full compliance<br />

(for example, with European Union directives) in solid waste management.<br />

According to the National Waste Management Plan 2008-2012 (2008), the<br />

communal waste management system in the country is based on the existing<br />

system of collecting and transporting waste. The plan gives guidelines for establish<br />

a system that presumes waste disposal in sanitary landfills in combination<br />

with transfer stations and recycling centres. In addition, the National<br />

Waste Management Plan 2008-2012 provides a framework for the regional<br />

concept of waste management which would be based on the interests of local<br />

self-governments jointly to organize some activities related to waste management<br />

with the following reasoning behind the concept: rational use of space,<br />

limited resources, and reducing the overall costs of waste treatment. The region,<br />

that would have a regional landfill to serve its purposes, would need to<br />

have a landfill contracted and managed in accordance with regulations, standards<br />

and EU directive.<br />

The Law on Waste Management, adopted in 2005 (Official Gazette 80/05; implementation<br />

postponed until 1 January 2008), sets out that Montenegro is<br />

committed to organizing work on collection, temporary storage, transport,<br />

processing and disposal of waste by respecting principles of sustainable development,<br />

proximity, and regional waste management system, as well as enforcing<br />

preventive action, "polluter pays" and at utmost the respect to the sequence<br />

of waste management practices. Furthermore, the Law prescribes that waste<br />

management is implemented and organized in accordance with national and<br />

local waste management plans.<br />

The key guiding principles of Montenegro‟s waste management system are set<br />

to be:<br />

• Sustainable development - respecting this principle creates the preconditions<br />

for sustainable waste management, which means more efficient use<br />

of resources and reduction of waste produced. Further, it means that when<br />

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waste has been already produced, it should be dealt with it in a way that<br />

will contribute to the overall objectives of sustainable development.<br />

• The proximity principle - waste should be treated or disposed as close to<br />

the place of his occurrence as possible. The principle aims to avoid adverse<br />

impacts of waste transport on the environment. However, this principle depends<br />

on local conditions and should be balanced against the principle of<br />

economic feasibility, which usually implies regional organization of waste<br />

management operations.<br />

• The precautionary principle means that if there is a possibility of<br />

serious or irreversible damage, lack of full scientific reliability cannot be a<br />

reason for not taking measures to prevent environmental degradation.<br />

• The polluter pays principle that stipulates that polluters must bear the full<br />

cost of the consequences of their actions. In the case of waste, producers<br />

and consumers of waste should bear the costs of production, treatment and<br />

disposal by including these in the price of services.<br />

• The waste hierarchy principle, which refers to the order of priority in waste<br />

management system: prevention of waste generation, preparation for reuse;<br />

recycling; treatment of waste in a different manner, such as composting,<br />

energy production, etc.; and finally disposal.<br />

These guiding principles of waste management in Montenegro have been accepted<br />

and promoted in country's policies, plans and legislation framework,<br />

starting with the National Waste Management Policy adopted in February 2004,<br />

the Strategic Master Plan for Solid Waste Management (end of 2004/beginning<br />

of 2005), Law on Waste Management (2005), and the National Waste Management<br />

Plan 2008-2012 (2008). As indicated in Section 4.6, however, continued<br />

harmonisation of this law with the EU Waste Directive is needed.<br />

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4 Institutional and Legal Review<br />

This chapter covers a review of the existing institutional and legal set-up concerning<br />

solid waste management in Montenegro at the national and local government<br />

levels.<br />

4.1 Institutional set-up at national level<br />

There are several institutions with influence on national policies related to solid<br />

waste management in Montenegro. Therefore, the following section provides<br />

an overview of the relevant actors at the national level as part of the waste<br />

management system in Montenegro.<br />

4.1.1 Ministry of Sustainable Development and Tourism (MoSDT)<br />

The MoSDT, (previously the Ministry of Spatial Planning and Environmental<br />

Protection), is the line ministry responsible for the environment and solid waste<br />

management, in particular:<br />

• Protection and improvement of the environment<br />

• Preparation and implementation of policies and strategies and the legislative<br />

framework in the field waste management, as well as preparation of a<br />

National Waste Management Plan and other programmes and plans<br />

• Urban and spatial planning<br />

• Establishing standards for waste treatment, permitting, and technical standards<br />

for waste treatment facilities<br />

• Coordination of waste management with other ministries and institutions<br />

• Management and coordination of waste projects funded from national and<br />

international resources<br />

• Issuing licenses to facilities for waste treatment, including recycling<br />

• Inspection and control of ecological parameters.<br />

Within the MoSDT, the Sector for Waste Management and Communal Development<br />

has nine permanent employees and two employees on defined-term<br />

contracts 1 . The sector comprises the following departments 2 :<br />

1 According to the official government systematization, the sector is to have 16 employees. Extract<br />

from the Regulations on internal organization and the Ministry of Sustainable Development and<br />

Tourism, 2011.<br />

2 Report on the work and situation in the administrative areas in 2011 of the Ministry of Sustainable<br />

Development and Tourism, May 2012. http://www.gov.me/sjednice_vlade/66<br />

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• Department of Waste Management: three permanent and one limited-term<br />

employee (5 positions total may be assigned according to the government<br />

systematization)<br />

• Department of Communal Development: 2 permanent employees (3 positions<br />

total may be assigned)<br />

• Department for Programming and Implementation of EU funds: four permanent<br />

and one limited-term employee (7 positions total may be assigned<br />

according to the government systematization).<br />

The Sector carries out tasks related, among others, to:<br />

• preparing policy proposals, recommendations and measures for implementation<br />

of policy related to communal issues<br />

• developing strategies and other developmental plans, programs and projects<br />

in the area of waste management<br />

• monitoring of the implementation of adopted long-term development planning<br />

documents and action plans<br />

• drafting laws and by-laws within the scope of this department, as well as<br />

providing opinions, interpretations and suggestions for the process of their<br />

implementation<br />

• monitoring the process of harmonization of legislation in its area of competence<br />

with the legislation of the European Union<br />

• monitoring and improvement of operation of business entities involved in<br />

communal activities<br />

• monitoring and improving human resource potential in its area of concern<br />

• adopting best international practices in the sector in accordance with the<br />

proposed measures<br />

• cooperating with educational institutions and professional associations in<br />

order to improve operations in its fields of concern<br />

• developing the institutional framework to improve relations in the field of<br />

waste management other utility services<br />

• cooperating with local governments in communal services, as well as cooperation<br />

with state and communal public companies or private companies<br />

and entrepreneurs who perform certain services<br />

• defining guidelines for the provision of communal services and analysing<br />

and assessing the situation in communal services, including solid waste<br />

management, to ensure compliance with international standards<br />

• implementing activities in the process of joining the European Union, as<br />

well as cooperating with international financial institutions and funds for<br />

the EU pre-accession assistance<br />

• participating in preparation of tender documents for procurement within<br />

the jurisdiction of the Sector<br />

• providing opinions, professional instructions, and technical assistance.<br />

4.1.2 Environmental Protection Agency (EPA)<br />

The Environmental Protection Agency is an independent body that deals with<br />

the implementation of laws related to environmental protection. It is responsible<br />

for environmental inspection and monitoring, issues permits, and implements<br />

strategic environmental assessment (SEA) and environmental impact<br />

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assessment (EIA) procedures, as well as is responsible for integrated pollution<br />

prevention and control (IPPC) permitting, with which all landfills in Montenegro<br />

must comply. The Agency‟s role also includes collecting data and preparing<br />

reports on conditions in the field of waste management in Montenegro for<br />

the relevant international organizations and institutions, such as the European<br />

Union.<br />

4.1.3 Other institutions<br />

Apart from the key institutions mentioned above, other institutions have an influence<br />

on solid waste policies, as shown in the following table.<br />

Table 1<br />

Other institutions in solid waste management in Montenegro<br />

Name of institution<br />

Directorate for Public<br />

Works<br />

Ministry of Agriculture<br />

and Rural Development<br />

Ministry of Economy<br />

Ministry of Finance<br />

Ministry of Health<br />

Ministry of Interior<br />

Ministry of Labour and<br />

Social Welfare<br />

Ministry of Transport<br />

and Maritime Affairs<br />

Description<br />

Divided into three sections (for investment implementation, investment<br />

monitoring, and general services), the Directorate is involved<br />

in the preparation, implementation and monitoring of public works<br />

projects.<br />

Previously Ministry of Agriculture, Forestry and Water Management.<br />

Responsible for the protection and use of agricultural land, control<br />

of animal waste, water management, and water protection.<br />

Responsible for energy, energy efficiency, mining, and geological<br />

survey, as well as regional development.<br />

Responsible for adopting the budget system and tax policy, as well<br />

as for foreign investments, donations and assistance from abroad.<br />

Responsible for health care, including management of medical<br />

waste, establishment of sanitary standards, as well as sanitary<br />

control and inspection.<br />

Responsible for local government. The Law on Local Self-<br />

Government falls under the jurisdiction of the Ministry of Interior<br />

Responsible for social security, employment policy, etc. The main<br />

laws governing employment condition and procedures on all levels<br />

are the Labour Law of Montenegro (Official Gazette of GoM<br />

No. 49/08) and Law on Civil Servants and State Employees (Official<br />

Gazette of GoM No. 50/08) for employment and work in public<br />

administration. Taxes on wages go indirectly into the municipal<br />

budgets, which then, among others, goes toward financing the<br />

activities of the PUC.<br />

Responsible for all transport.<br />

4.2 National Project Implementation Unit for<br />

Communal Services and Environment (PROCON)<br />

At the national level, the National Project Implementation Unit in the Field of<br />

Communal Services and Environment (PROCON) is the national project implementation<br />

unit established by the Government of Montenegro at the end of<br />

2008 to manage and coordinate projects in the area of communal services and<br />

environmental protection.<br />

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Mission<br />

Priority projects in<br />

SWM<br />

According to its mission and operations, PROCON strives to prevent<br />

environmental pollution, through expert support in improving the environmental<br />

protection system and developing/strengthening communal infrastructure<br />

in Montenegro. PROCON‟s main activities are consulting and management<br />

for the needs of the national and local governments. The services of<br />

PROCON are based on contractual relations between the Government of Montenegro<br />

and international financial institutions (i.e., the European Investment<br />

Bank (EIB) and various IFIs) and they encompass: project financing; project<br />

analyses to assess feasibility, sustainability and harmonization with strategic<br />

planning documents; preparation of ToRs for feasibility studies, studies on the<br />

estimate of environmental influence (EIA) and accompanying project documentation;<br />

organisation and implementation of tender procedures, as well as tender<br />

evaluation; and performing of other activities as stipulated by the contracts on<br />

utility-sector and environmental protection project financing. The main activity<br />

of the company is consulting and management.<br />

The company‟s priority projects in 2012 include the following in the field of<br />

solid waste management 3 :<br />

1 Construction of Leachate Water Treatment Plant for the landfill “Livade”<br />

landfill in Podgorica<br />

2 Sanitation and remediation of dumpsite “Vrtjeljka” in Old Royal Capital<br />

Cetinje (documentation and studies)<br />

3 Sanitation and rehabilitation of "Ćafe" dumpsite in the municipality of Bar<br />

4 Construction of regional landfill in Nikšić Municipality for the municipalities<br />

of Nikšić, Šavnik and Pluţine<br />

5 Construction of regional centre for waste management in Pljevlja Municipality<br />

for the municipalities of Pljevlja and Ţabljak (documentation and<br />

studies)<br />

6 Construction of the regional centre for waste management in Berane, for<br />

the municipalities of Berane, Andrijevica, Plav and Roţaje (intended for<br />

implementation through a public private partnership – PPP)<br />

7 Construction of Regional centre for waste management in Kotor Municipality,<br />

for the Municipalities of Kotor, Tivat and Budva (Herceg Novi)<br />

8 Construction of a Regional Landfill in the Municipality of Bar, for the municipalities<br />

of Bar and Ulcinj.<br />

Organization<br />

The company‟s main legal acts are listed in Annex 1. The company‟s<br />

organisational structure is presented in the following figure.<br />

3 http://www.procon.me/eng/projects.phpak=t&p=3<br />

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Figure 1<br />

Organisational chart of PROCON<br />

Source: website of PROCON (http://www.procon.me/eng/page.phppid=3)<br />

4.3 National policy framework<br />

The national policy framework can be viewed through the following national<br />

policy documents, which are discussed further in this sub-section.<br />

• National Policy for Waste Management (February 2004)<br />

• Republic-Level Solid Waste Strategic Master Plan (January 2005)<br />

• National Strategy for Sustainable Development (2007)<br />

• Montenegro Spatial Plan until 2020 (March 2008)<br />

• Policy Development Plan (December 2008)<br />

• Waste Management Plan in Montenegro for 2008 – 2012 (February 2008)<br />

• Regional Development Strategy 2010-2014 (February 2011).<br />

4.3.1 National policy for waste management (2004)<br />

On 26 February 2004, Montenegro adopted a National Waste Management Policy,<br />

which encompasses a vision, principles and objectives prescribed by the<br />

National Environmental Programme, as well as supports the targeted objectives<br />

of other existing national regulations and standards. This policy of integrated<br />

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and sustainable waste management constitutes a vision for future waste management<br />

methods and defines goals and strategies that will facilitate its implementation.<br />

In summary, the Policy aims at:<br />

• Promotion of the prevention and reduction of waste generation and thereby<br />

pollution<br />

• Promotion of the management and reduction of waste impacts that cannot<br />

be avoided, from generation to final disposal<br />

• Provision of integrated and sustainable capacities and conditions for use of<br />

water, air and soil<br />

• Ensuring remediation of any contamination of the environment by making<br />

the person responsible for the contamination liable for this remediation.<br />

4.3.2 Republic-Level Solid Waste Strategic Master Plan (2005)<br />

The Republic-Level Solid Waste Strategic Master Plan, which was adopted in<br />

January 2005, provides conditions for the rational and sustainable management<br />

of solid waste at the national level. The Master Plan is aimed at the reduction of<br />

the impact of waste on the environment, increasing efficiency in the use of resources,<br />

and waste management gaps in the past. The Master Plan establishes<br />

the major objectives that are to lead to satisfactory progress in waste management<br />

at the national level, while in the mid-term the goal is to reduce waste, in<br />

line with relevant European Union directives on waste. In addition, the Master<br />

Plan establishes internal national targets, focusing on the management of municipal,<br />

hazardous, medical and other types of waste. In the medium-term, the<br />

results should aim to:<br />

• Increase the amount of waste collected<br />

• Reduce the amount of waste deposited in landfills/dumps<br />

• Introduce recycling activities.<br />

Apart from its vision and goals, the Master Plan gives an overview of the major<br />

types of waste generated in the country, as well as examines the then current<br />

waste management process, providing relevant management plans for strengthening<br />

the system through legislation and institutional restructuring. In this respect,<br />

the Master Plan envisions the construction of seven regional landfills for<br />

municipal waste, to serve all 21 municipalities in Montenegro. In addition, the<br />

Master Plan prescribes rehabilitation of the existing waste disposal sites, improvements<br />

in waste collection and recycling systems, as well as improvements<br />

in management and disposal of specific types of waste: hazardous, wastewater<br />

sludge, and medical waste. The financial implication of the implementation of<br />

the activities envisioned in the Master Plan was estimated at EUR 120 million<br />

up to 2014.<br />

Significant achievements have been made in the areas of policy reform and<br />

harmonization, while from the infrastructure side the projects seeking for heavy<br />

investment are in the preparation phases and need further financing or are under<br />

implementation. At the moment, Montenegro has only one sanitary landfill that<br />

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acts as a regional: the landfill “Livade" in Podgorica, servicing also Danilovgrad<br />

and Cetinje.<br />

4.3.3 National Strategy for Sustainable Development – NSSD<br />

(2007)<br />

The commitment to Montenegro as an Ecological State (see section 4.4.1 on the<br />

Constitution) has led to the preparation of the framework strategic document<br />

Directions for the Development of Montenegro as an Ecological State in 2000.<br />

The NSSD represents a further step based on previous actions to incorporate<br />

elements of modern strategic planning and to establish a stronger connection<br />

with the international processes, strongly relying on the Development and Poverty<br />

Reduction Strategy and other sectoral strategies developed in the country.<br />

Additionally, the NSSD is one of the elements of the implementation of the<br />

Mediterranean Strategy of Sustainable Development (MSSD) at the national<br />

level, aimed at implementing sustainable development principles for the betterment<br />

of the environment and people.<br />

Principles<br />

In Montenegro, the principles of sustainable development are understood as<br />

the:<br />

• Integration of environmental issues in sectoral policies<br />

• Internalization of environmental costs (i.e., conversion of external costs of<br />

environmental degradation into internal costs of polluters/users) through<br />

the implementation of the polluter/user pays principles<br />

• Participation of all stakeholders in decision-making, consultations, dialogue,<br />

and partnerships<br />

• Access to information and justice<br />

• Inter and intra-generational equity, as well as gender equality<br />

• Precautionary principle, or the requirement to safeguard natural equilibrium<br />

in the absence of certainty<br />

• Principle of subsidiary and interdependency between local and global levels<br />

• Access to services and financial resources to meet basic needs.<br />

Main problems<br />

The NSSD reflects on the issues of different sectors, among others waste. The<br />

Strategy recognizes the main problems in the waste sector that need significant<br />

improvement in order to meet the objective of sustainable development, such<br />

as:<br />

• poor database on different sources, quantities and sites where waste is disposed<br />

• provisional data on communal waste, no data on construction and animal<br />

waste<br />

• small scale of recycling, and almost non-existent energy recovery programmes<br />

and recovery of raw materials from waste<br />

• low awareness of the need to reduce waste generation and provide for its<br />

appropriate treatment/disposal<br />

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• lack of sufficient capacities of public utility companies as the main providers<br />

of municipal waste collection and disposal services<br />

• selection of sites for future regional landfills that are acceptable to the local<br />

population from the point of view of environmental protection and which<br />

incur the lowest costs<br />

• implementation of new regulations and necessary improvements in managing<br />

hazardous and industrial waste.<br />

The Republic-Level Solid Waste Strategic Master Plan, the National Waste<br />

Management Policy and the Law on Waste Management are aimed at addressing<br />

above mentioned issues, leading to the conclusion that successful implementation<br />

of these polices will improve the state of the waste sector in the<br />

country. In these respects, the main goals of the NSSD in waste management<br />

are the further harmonization of national legislation with EU legislation,<br />

strengthening capacities for waste management, construction of sanitary landfills,<br />

raising awareness on waste separation and recycling, and enhancing the<br />

waste database.<br />

4.3.4 Spatial Plan of Montenegro until 2020<br />

The Spatial Plan of Montenegro until 2020 sets the national objectives and<br />

measures for spatial development, in line with economic, ecological, socioeconomic<br />

and cultural-historic development. Furthermore, the Spatial Plan defines<br />

general and specific principles of spatial development, in accordance with<br />

sustainable development principles, and provides guidelines for the development<br />

of sectoral policies and detailed spatial planning documents at the state<br />

and local levels.<br />

Scope<br />

The Spatial Plan of Montenegro envisions the spatial development of the<br />

country in response to the actual needs of the population as well as to recent<br />

changes and future trends. Two main pillars constitute the spatial development<br />

of the country, reflecting different requirements of the same process:<br />

• regionalization of the development perspective<br />

• further integration of the Montenegrin space.<br />

Classification<br />

The Spatial Plan specifies three regions of Montenegro:<br />

• Coastal Region – development zones of Boka Kotorska Bay, Central Coast<br />

and Southern Coast.<br />

• Central Region – development zones of Zeta and Bjelopavlići Plain, Nikšić<br />

and Cetinje area constituting lowlands surrounded by karst areas. The largest<br />

part of industry, the best agricultural land and the main centres of services,<br />

cultural and other tertiary activities, excluding tourism, are concentrated<br />

in this region. The present spatial structures and conditions in the<br />

Central Region require an appropriate organization of the space in the light<br />

of the industrial restructuring processes and pressure on agricultural land.<br />

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• Northern Region – development zones formed in the river valleys of the<br />

Lim, Tara and Ćehotina, Piva and Ibar, with adjacent mountain areas.<br />

Objectives<br />

As mentioned previously, the Spatial Plan of Montenegro states general and<br />

specific guidelines for development of sectoral policies. Concerning waste, the<br />

Spatial Plan sets out the following objectives to:<br />

• mitigate the negative environmental impacts of waste. To this end, the municipalities,<br />

as the responsible authority for waste disposal, are to elaborate<br />

waste management strategies. These strategies must include approaches for<br />

waste collection and disposal in accordance with established intermunicipal<br />

cooperation.<br />

• reduce the volume of waste by introducing systems of waste separation to<br />

exclude those components of waste that can be reused or recycled from<br />

those that have to be landfilled. Accordingly, municipalities have to elaborate<br />

concepts for waste separation systems in accordance with their general<br />

waste management strategies.<br />

• define special areas for collection, i.e. primary disposal of solid municipal<br />

waste, so that complete functional areas are established, with waste management<br />

centres as integral parts. The areas are determined on the basis of<br />

the corresponding number of potential users, homogenous internal transportation<br />

links at as short as possible distance, and the existing disposal<br />

system.<br />

• close or rehabilitate, if possible, existing, mostly inappropriately organized<br />

dumps, which represent the greatest danger as potential pollution sources.<br />

The locations have to be secured from further potential pollution of natural<br />

resources by conducting appropriate ecological-technical measures.<br />

• dispose and treat low and medium radioactive waste in accordance with the<br />

regulations on the protection from ionizing radiation and international conventions<br />

and treaties, of which Montenegro is a signatory. In accordance<br />

with international guidelines, sites are defined by analysing variants, with<br />

careful evaluation of options from the point of view of environmental impact<br />

and urban development, economic effects and general social acceptability.<br />

The selection of sites should be defined on the basis of detailed and<br />

comprehensive studies including environmental impacts assessment (also<br />

considering transport requirements) and potential seismic risks.<br />

Objective<br />

4.3.5 Policy Development Plan (2008)<br />

The Policy Development Plan was developed in 2008 by the Ministry in charge<br />

of environmental and sustainable development issues (at the time, the Ministry<br />

of Tourism and Environment) to provide a technical guidance tool for the development<br />

of environmental policy in line with the EU standards and good<br />

practices over the course of the next two to three years. The Plan intends to address<br />

organizational changes and capacity development of the Ministry and to<br />

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contribute to the institutional strengthening necessary as part of the accession<br />

process in the area of environment. The Plan:<br />

• reviews and analysed existing information<br />

• identifies priority areas for environmental policy-making<br />

• outlines what actions and resources are needed to develop a comprehensive<br />

set of environmental policies over time.<br />

The Plan reflects to a large degree the priorities and activities outlined in the<br />

National Program for Integration (NPI) of Montenegro into the European Union<br />

for 2008 – 2012. In addition, it draws significantly on other available policies<br />

and strategies relevant to the environment sector in Montenegro, especially<br />

on the National Strategy for Sustainable Development.<br />

Content<br />

Requirements<br />

The document comprises two parts. Part one outlines general topics such as the<br />

purpose and content of environmental policies, discusses setting of policy objectives<br />

and policy integration, and presents the purpose and objectives of the<br />

Plan, as well as methodology applied. Part two provides detailed information<br />

on 14 policy areas (among others, waste) and a number of sub-areas for which<br />

specific policies are to be developed. At the end of the Plan, one-page factsheets<br />

are provided which contain summarized information on each policy area<br />

and sub-area covered in the Plan.<br />

Concerning waste, the Plan prescribed actions to be taken that were relevant at<br />

the time of the Plan development, such as:<br />

• Further transposition of the Hazardous Waste Directive 91/689/EEC,<br />

Waste List Decision 2000/532/EC, and Regulation (EC) 1013/2006 is<br />

planned through the following secondary legislation:<br />

- Rulebook on Types and Waste Test Methods (containing catalogue of<br />

waste)<br />

- Rulebook on Mandatory Requirements for Assets and Equipment<br />

Used for Collection or Transport of Hazardous Waste<br />

- Rulebook on Content of Labels for Products Containing Hazardous<br />

Substances<br />

- Rulebook on Content, Form and Manner of Preparing Waste Records,<br />

etc.<br />

• Further harmonization with the Waste Framework Directive, Landfill Directive,<br />

Regulation on Shipments of Waste and Waste List Decisions is<br />

planned through the following secondary legislation:<br />

- Rulebook on landfills<br />

- Rulebook on Types and Waste Test Methods (containing catalogue of<br />

waste)<br />

- Rulebooks on requirements for provision of waste treatment and disposal<br />

services, on different types of waste to be accepted on landfills,<br />

on reuse and recycling, waste reporting etc.<br />

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• Transposition of the Waste Incineration (WI) Directive is planned for 2010<br />

– 2012. Transposition of the Landfill Directive through harmonization of<br />

secondary legislation with the Urban Wastewater Treatment Directive and<br />

Sewage Sludge Directive was planned in 2009. From 2010 – 2012, harmonization<br />

with the following directives is planned:<br />

- Batteries and accumulators Directive<br />

- Waste Electrical and Electronic Equipment Directive (WEEE Directive)<br />

and Restriction of Hazardous Substances Directive (RoHS Directive)<br />

- End-of-life vehicles Directive<br />

- Packaging and packaging waste Directive<br />

- Waste oils Directive<br />

- PCBs and PCTs disposal Directive.<br />

From 2008 to 2012, most of the above prescribed activities have been realized.<br />

Scope<br />

4.3.6 National Waste Management Plan for 2008-2012<br />

The Waste Management Plan in Montenegro for 2008-2012 was adopted in<br />

February 2008. The Plan includes:<br />

• Assessment of waste management<br />

• Objectives of waste management<br />

• Long and short-term measures for waste management in the planning period,<br />

with the implementation dynamics<br />

• Funding framework for the realization of the plan<br />

• Plan realization paths and the responsible institutions<br />

• Raising public awareness on waste management.<br />

Objective<br />

The main task of the Waste Management Plan in Montenegro for 2008-2012 is<br />

the implementation of the strategic directions for waste management in the<br />

country. These directions are as follows:<br />

• Establishing an integrated waste management system, based on increasing<br />

the amount of waste that is collected, reducing the amount of waste that is<br />

disposed, and introducing recycling<br />

• Remediation and closure of existing landfills<br />

• Remediation of "hot spots" or locations highly affected by waste load.<br />

• Development and establishment of inter-municipal (regional) sanitary<br />

landfill with waste treatment before final disposal.<br />

Furthermore, this Plan assigns to local self-governments the responsibility to<br />

develop and implement waste management policy at the local level, through:<br />

• Adopting programmes and plans for waste management in their territory<br />

• Pursuing joint programs between two or more municipalities<br />

• Estimating waste production<br />

• Developing a plan for collecting and transporting<br />

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• Developing a Treatment Plan<br />

• Preparing a Disposal Plan<br />

• Reducing waste production<br />

• Improving the capacity of utilities<br />

• Regulating the work of the private sector regarding the collection, transportation<br />

and disposal of waste<br />

• Improving the permitting system.<br />

4.3.7 Regional Development Strategy 2010-2014 (2011)<br />

In order to achieve a more equal socio-economic development of Montenegro,<br />

in accordance with the principles of sustainable development, regional development<br />

in the EU, and as an important element of the EU accession process, in<br />

February 2011 the Government of Montenegro developed and adopted the Regional<br />

Development Strategy for 2010-2014.<br />

Objective<br />

The main aim of this Strategy is to define socio-economic development goals<br />

and reduce regional disparities, by strengthening the potential for the development<br />

of those parts of the country that are lagging behind more developed ones.<br />

The document represents a governing instrument of economic policy. The strategy<br />

is defined by the "bottom up" principle, linking local and regional development<br />

needs with the development priorities at the national level, support to<br />

less developed areas, and support for sustainable natural resource management,<br />

application of low carbon technologies and the development of municipal infrastructure.<br />

The Strategy defines three regions:<br />

• North region: comprising the Municipalities of Andrijevica, Berane, Bijelo<br />

Polje, Mojkovac, Kolašin, Plav, Pljevlja, Pluţine, Roţaje, Šavnik and<br />

Ţabljak.<br />

• Central region: comprising the Capital town - Podgorica, Historic capital<br />

town - Cetinje, and the Municipalities of Danilovgrad and Nikšić.<br />

• Coastal region: comprising the Municipalities of Bar, Budva, Herceg-<br />

Novi, Tivat, Kotor, Ulcinj.<br />

Three strategic objectives are defined in the Strategy: balanced development of<br />

all local governments and regions, rapid development of less developed municipalities<br />

and regions, and regional development and environmental protection.<br />

Content<br />

The Regional Development Strategy for 2010-2014 contains a SWOT analysis<br />

of a cross-section of all the factors that influence the development of state and<br />

local government, the details of which are presented in the Annex to this Report.<br />

Among others, the Regional Development Strategy foresees development<br />

of solid waste management as a priority.<br />

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4.4 Relevant national legislation<br />

This section contains an overview of relevant national laws that affect the solid<br />

waste management sector, beginning with the Constitution of the Republic of<br />

Montenegro.<br />

4.4.1 Constitution of the Republic of Montenegro<br />

The country‟s significant natural potential and stated duty to preserve it have<br />

led to the proclamation of Montenegro as an Ecological State, by the adoption<br />

of the Parliament of Montenegro of the Declaration on Montenegro as an Ecological<br />

State in 1991. This Declaration was in accordance with the principles<br />

and requirements of sustainability. This commitment to a healthy environment<br />

was confirmed in Montenegro‟s Constitution in 1992, which states that Montenegro<br />

is a “democratic, social and ecological state” and established the right to<br />

a healthy environment and the duty to protect and improve it as constitutional<br />

principles.<br />

4.4.2 Law on Environment<br />

The Law on Environment 4 defines the basic principles and instruments to be<br />

used to protect environment. This law prescribes: principles of environmental<br />

protection and sustainable development, actors and instruments of environmental<br />

protection, public participation on environmental matters and other issues<br />

of importance to the environment. Environmental protection ensures the<br />

general preservation of the quality of environment, biological and landscape<br />

diversity, rational utilization of natural resources and energy in the most convenient<br />

manner for the environment, as a basic condition for a healthy and sustainable<br />

development. Integrated environmental management is conducted in a<br />

manner to ensure sustainable development in accordance with this Law and<br />

other regulations.<br />

4.4.3 Law on Nature Protection<br />

The Law on Nature Protection5 defines measures for the protection of nature<br />

and particularly the protection of certain natural resources which are specific by<br />

biological, geological, and ecosystem biodiversity. The Law establishes the<br />

procedure for putting under protection natural resources, determines ways to<br />

control and use protected natural resources, provides for special protection<br />

measures, and prescribes the measures to protect during the performance of<br />

work/activities and in the process of development of spatial and other plans. By<br />

this Law, national categories of protected natural objects are established such<br />

as: parks and natural areas, nature reserves, natural monuments, memorials and<br />

monuments, and some flora and fauna species.<br />

4 Official Gazette of GoM, No. 48/08<br />

5 Official Gazette of GoM, No. 51/08, 21/09<br />

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4.4.4 Law on Environmental Impact Assessment<br />

The Law on Environmental Impact Assessment6 regulates the process of environmental<br />

impact assessment for projects that can have a significant impact on<br />

the environment, the contents of the study on impact assessments, the participation<br />

of interested institutions, organizations and the public, the process of assessment<br />

and issuing of approvals, information on projects that can have a significant<br />

impaction the environment of another state, control and other issues of<br />

importance to assess the impaction the environment. Regional landfills in Montenegro<br />

require an environmental impact assessment.<br />

Several bylaws were passed prior to the date on which the Law came into effect<br />

(1 January 2008), including the Decree on projects subject to EIA7; Rulebook<br />

on content of documentation to be submitted together with request for determination<br />

on the need for EIA8; Rulebook on content of documentation to be submitted<br />

together with request for determining the EIA scope and contents of the<br />

EIA study9; Rulebook on content, form and a way of keeping the public record<br />

on actions and decisions on EIA10; and Rulebook on contents of the EIA<br />

study11. The EIA law and related secondary legislation are harmonized with<br />

the EU Directive 85/337/EEC on the assessment of the effects of certain public<br />

and private projects on the environment, as amended by 97/11/EEC and<br />

2003/35/EC. The requirements of EU Directive 2003/4/EC and Directive<br />

2003/35/EC on public access to environmental information, public participation<br />

in decision-making and access to justice, were transposed into this Law.<br />

In terms of projects that are subject to EIA, the Decree on projects subject to<br />

EIA divides activities into two lists; for projects on the first list, the EIA is<br />

mandatory, while for projects on the second list, an EIA may be required.<br />

Essentially any major investment in the solid waste sector requires an EIA. The<br />

types of solid waste projects that fall under List 1 are contained in the annex to<br />

the law, under point 11 (“other projects“) and include:<br />

• Installations for the treatment of hazardous waste by incineration, chemical<br />

or biological treatments as well as landfills for temporary and permanent<br />

storage of hazardous and radioactive waste.<br />

• Waste disposal installations for the incineration or chemical and biological<br />

treatments, temporary storage and permanent disposal of non-hazardous<br />

waste, including municipal and inert waste, with a capacity exceeding 100<br />

tonnes per day.<br />

6 Official Gazette of GoM, No. 80/05<br />

7 Official Gazette of Montenegro No 20/07<br />

8 Ibid.<br />

9 Ibid.<br />

10 Ibid.<br />

11 Ibid.<br />

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All other typical solid waste projects fall under List 2 (annex 2 to the Law, under<br />

point 13 “Other projects“), including:<br />

• Waste disposal installations for the incineration or chemical and biological<br />

treatments, temporary storage and permanent disposal of non-hazardous<br />

waste, including municipal and inert waste, with a capacity not exceeding<br />

100 tonnes per day<br />

• Recycling facilities and centres for waste recycling<br />

• Plants for treatment and disposal of sludge from waste water<br />

• Installations for processing, storage and permanent disposal of radioactive<br />

waste<br />

• Installations for the disposal of animal carcasses and animal waste<br />

• Biogas plants<br />

The Law on EIA sets the responsibility of conducting the EIA on the project<br />

developer and the obligation for authorisation for the impact assessment is governed<br />

under Article 6: “Project developer cannot commence with project implementation<br />

without previously conducted impact assessment procedure and<br />

obtaining of authorisation of the competent authority for the impact assessment<br />

Study.” The Environmental Protection Agency acts as the state administration<br />

body for projects for which other consents, approvals and permits are issued by<br />

other state administration). At the local level, however, the competent authority<br />

is part of a local self-government unit responsible for environmental protection.<br />

4.4.5 Law on Integrated Pollution Control and Prevention<br />

The Law 12 on Integrated Pollution Control and Prevention regulates the conditions<br />

and procedures for issuing integrated permits for installations and activities<br />

that can have negative impacts on human health, environment or material<br />

assets, the types of activities and facilities, surveillance and other issues of importance<br />

to prevent and control environmental pollution. The Law complies<br />

with the Council Directive 96/61/EC concerning integrated pollution prevention<br />

and control and its later amendments.<br />

All envisioned landfills in Montenegro fall under this Law, meaning that they<br />

require an IPPC permit, due to their capacities according to existing project<br />

documentation for their construction and operation 13 .<br />

4.4.6 Law on Strategic Environmental Impact Assessment<br />

The Strategic Environmental Impact Assessment Law defines the conditions,<br />

manner and procedure for carrying out strategic impact assessment on environment<br />

of certain plans and programmes, through the integration of environmental<br />

principles in the process of preparation, adoption and implementation of<br />

plans or programs which have a significant impact on the environment.<br />

12 Official Gazette of GoM 80/05<br />

13 10 tonnes daily or 25000 tonnes in total<br />

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The national legislation on strategic environmental impact assessment has been<br />

harmonised with relevant Directive 2001/42/EC of the European Parliament<br />

and of the Council of 27 June 2001 on the Assessment of the Effects of Certain<br />

Plans and Programmes on the Environment, with the Protocol on Strategic, and<br />

was drafted in accordance with the EU Guidance on SEA directive implementation.<br />

4.4.7 Law on Spatial Planning and Construction of Buildings<br />

The Law on Spatial Planning and Construction of Buildings 14 defines the system<br />

of spatial planning of Montenegro, the manner and conditions of building<br />

structures and other issues relevant to spatial planning in order to create conditions<br />

for the spatial development and for the legal construction of facilities in<br />

accordance with the standards of quality and technical standards in the field of<br />

construction.<br />

Spatial planning is based, in accordance with the Law, on the following principles:<br />

harmonized economic, ecological, social, energy, and cultural development<br />

of the State; sustainable development; encouraging balanced economic<br />

development, rational use and protection of space and natural resources, compliance<br />

with European regulations, protection of integrated values of the space,<br />

decentralization, polycentric cohesion and competitiveness, protection and improvement<br />

of the environment, cultural heritage, public interest, public participation<br />

in planning, seismic planning.<br />

Construction of facilities is to be based on the following principles: protection<br />

of public interest, real estate property, harmonization with European norms and<br />

standards, stability and durability of the building, a seismic design and construction,<br />

health, environmental and space, protection from natural and technological<br />

disasters, fire, industrial accidents, thermal protection, protection from<br />

noise, reducing the irrational use of energy and energy efficiency.<br />

4.4.8 Law on Local Self-Government 15<br />

With the adoption of the Law on Local Self-government in 2003, and following<br />

its amendment, significant decentralization of activities from the national to the<br />

local level was pursued by increasing the competence and jurisdiction of local<br />

governments. The Law on Local Self-government established activities and<br />

services to be provided by the local self-governments. The Law prescribes legal<br />

status of the municipality, services of the local government, property, local<br />

government financing 16 , local government public bodies, local communities,<br />

14 Official Gazette of Montenegro No. 51/08<br />

15 Law on Local Self-Government (Official Gazette of Go M No. 42/03, 28/2004, 75/2005, 13/2006,<br />

88/2009, 3/2010)/ Law on financing of local self-governments Official Gazette No. 42/2003, 44/2003,<br />

No/2008. Note to the Art. cl. 174. Of the Law - 51/2008-1) and Law on Financing Local Self-<br />

Government (Official Gazette No. 42/2003, 44/2003, No/2008. Note to the Art. cl. 174. Of the Law -<br />

51/2008-1).<br />

16 Prescribed in detailed by the Law on Financing of Local Self-governments (Official Gazette No.<br />

42/2003, 44/2003, No/2008. Note to the Art. cl. 174. Of the Law - 51/2008-1).<br />

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citizen participation in the provision of local self-government services, relations<br />

and cooperation between local governments and citizens, relations of local governments<br />

and nongovernmental organizations, association and cooperation of<br />

local communities, transparency of local-government services, etc.<br />

The most important policy regulating the operation of the local governments is<br />

the Law on Financing Self-governments together with the Law on Property<br />

Tax, which regulates mostly the introduction, collection and control of major<br />

local revenues, with their latest amendments, both Laws entered into force on 1<br />

January 2011.<br />

Financial aspects<br />

The Law on Financing Self-governments aims at providing more financial<br />

sustainability and fiscal autonomy of local-governments. The sources of financing<br />

for local-governments include:<br />

• own revenues (local communal tax, local administrative tax, compensations<br />

for the use of communal property of general interest, compensations<br />

for the use of land, revenues collected by the administrative bodies, fees,<br />

etc.)<br />

• renounced revenues within the municipality, collected out of different<br />

kinds of taxes<br />

• additional resources (municipalities that cannot provide the resources necessary<br />

for their activities receive extra resources from the State budget (or<br />

“governmental support”) 17 .<br />

The national government provides direct capital funding for some municipal<br />

services such as roads construction, lighting, water and sanitation, culture and<br />

sports. Investment grants are also available to municipal budgets, although they<br />

require a high percentage (50 to 70%) of matching funds. Since municipalities<br />

cannot provide this with their own funds, or based on their own creditworthiness,<br />

they are effectively dependent on State guarantees.<br />

The allocation of taxes on property, property use and beverage consumption to<br />

municipalities, and shares of 10% in personal income tax (PIT) by residence<br />

and 50% in property transfer tax, together with fees, charges and the right to<br />

impose a surcharge of up to 13% on personal income tax, (15% in the two cities)<br />

were introduced. Certain administrative difficulties, as well as adoption of<br />

a number of other laws, such as the Laws of the Local Communal Taxes, the<br />

Law on Registry, the Law on Spatial Planning and Construction of Objects,<br />

Person Income Tax Law and others), however, have decreased the revenue<br />

sources of local-governments 18 . In addition, collection of certain fees has been<br />

difficult for local governments due, among others to a lack of reliable taxpayer<br />

databases.<br />

Another problem local-governments face resulted from State‟s efforts to support<br />

the construction sector during crises by adopting the Law on Spatial Plan-<br />

17 Local Government Initiative, http://lgi.osi.hu/country_datasheet.phpid=202<br />

18 Ibid.<br />

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ning and Construction of Objects. This law cancelled significant local government<br />

revenue – fees for use of construction land – which has jeopardized the<br />

implementation of another significant local revenue: fees for land development<br />

(compensation for setting communal infrastructure on the land), which was established<br />

in the Law on Financing Local Self-governments.<br />

4.4.9 Law on Participation of Private Companies in Public<br />

Services<br />

The Law on Participation of Private Companies in Public Services 19 , which applies<br />

to all public institutions, provides a framework for intensification of participation<br />

of the private sector in the areas of general significance for the society,<br />

and application of public services in relation to leasing and management<br />

contracts, including build-operate-transfer (BOT) arrangements. This Law, together<br />

with the Law on Concessions, provides general arrangements for several<br />

instruments that could be used for planned action and private capital to revitalise<br />

the infrastructure of the state/local governments despite the lack of funds<br />

from the budget for participation of the private sector in public services, for the<br />

betterment of government/local governments. These areas are:<br />

Public-private-Partnership (PPP) 20 : a private investor can undertake construction<br />

on a given site and use it for pre-defined number of years, but it needs to<br />

transfer the ownership after the completion of the pre-defined timeframe by<br />

which the public interest is protected. With such arrangements, private companies<br />

bring profit to the local governments, which resource was previously exploited.<br />

The Law envisioned that PPPs can be concluded only on the grounds of<br />

a public call made by a public institution (Article 15 of the Law).<br />

From 2002 to 2009, the Law on participation of the private sector in the procurement<br />

of public services regulated the area of concessions. With the adoption<br />

of the Law on Concessions in 2009, certain provisions of the Law on participation<br />

of the private sector in the procurement of public services ceased to<br />

be applicable (Provisions of chapters IV, VII, VIII, IX and articles 141, 142 and<br />

143 Law on participation of private sector in the procurement of public services,<br />

as well as the provisions of other chapters related to concessions and<br />

BOT arrangements ceased to be applicable. Provisions of other laws regulating<br />

the allocation of concessions will not be applied if contrary to this law).<br />

Procurement of public services leasing (articles 55-63) can be used for: existing<br />

public infrastructure that requires repair, existing public enterprises not requiring<br />

repair, or for infrastructure that will be of public use. The private investor<br />

bears the costs of insurance and maintenance, while the insurance agreement<br />

is integrated in the lease agreement. The investor or the operator cannot benefit<br />

from subsidies, or use the public funds for repair for personal gain. (“activities<br />

19 Official Gazette GoM No. 30/02 from 26.06.2002 and No. 08/09 from 04.02.2009<br />

20 Institut Alternativ, with support from Open Society Institute, Public-Private Partnerships in Montenegro:<br />

Accountability, transparency and efficiency<br />

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undertaken in terms of procurement are conducted in line with the best and<br />

generally accepted private sector procurement practice”-articles 63-69).<br />

Management Agreements (articles 64-69) can be established between a public<br />

institution and consulting agencies or private consultancy based on the contract<br />

to offer different type of services, such as: management, supervision, financial,<br />

legal, or technical services. Commission (3 member) that needs to be approved<br />

by the government/parliament, municipality/line ministry (depending who concludes<br />

the Agreement) is established to monitor the implementation of the contract.<br />

The commission approves the reports of the consultants or consulting<br />

agencies, and the copies are passed on to the Privatization Council.<br />

4.4.10 Law on Concessions<br />

In Montenegro, according to the Law 21 , concessions are awarded for several<br />

reasons (art. 2):<br />

• in the public interest, to increase employment, introduce a new technology<br />

and secure enhanced economic growth, or secure profit for the grantor<br />

• rational, cost-effective, proper and efficient use of natural resources, goods<br />

in general use, and other goods from general interest<br />

• <strong>Technical</strong>-technological advancement and improve security and unity of<br />

the system, infrastructure improvement activities subject to the concessions;<br />

• construction, reconstruction and modernization of objects that are significant<br />

for the provision of public services<br />

• Competition in the area which provides concessions, protection and improvement<br />

of the environment.<br />

The Law provides grounds for the process of allocating concessions, guaranteeing<br />

to the bidder complete and correct information on the procedures, standards<br />

and criteria for the selection of the concessionaire; defines categories subject<br />

for concessions (Article 6).<br />

The Law on Concessions prescribes the maximum concession period of 30<br />

years, when the concession has been allocated by the government or the parliament,<br />

and the maximum concession period of 60 years when the decision on<br />

the allocation of the concession has been adopted by the Parliament (Article 8,<br />

paragraph 2). The possibility to extend a concession for a period not exceeding<br />

half of the period defined in the original concession contract is given by the<br />

Law.<br />

An eight-member Concessions Commission must be established (plus the<br />

President of the Commission), whereas the Government elects the president of<br />

the Commission. Membership is for a five-year period with the possibility of a<br />

single re-election (Article 10, paragraph 8).<br />

21 Official Gazette of GoM No. 08/2009<br />

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The plan for awarding concessions is determined and published on the Government<br />

website annually and adopted by the Government or the municipality,<br />

depending on whether the plan is adopted at the state or local level. Before<br />

adopting the plan, the competent authority is obliged to organize a public debate.<br />

The concession is allocated on the grounds of a public call for bids and a<br />

public competition either in an open, two-phase, or a shortened procurement<br />

process.<br />

For a concession lasting for up to three tears, a shortened process with no public<br />

debate is prescribed. The possibility for not having the legal obligation to<br />

have a public debate in the shortened process is a novelty in Montenegrin legislation.<br />

In Montenegro, compulsory public debate existed until 2009 (Law on<br />

participation of private sector in the procurement of public services required<br />

that public debates are organised for all concessions regardless of their duration.<br />

This is visible from article 74 of this Law, stipulating that each concession<br />

contract concluded on grounds of article 73, which is concluded without the<br />

consent of the bearer of the concession, and publication in the “Official Gazette<br />

of the Montenegro” and without public debate will be considered null and<br />

void) 22 .<br />

4.4.11 Law on Foreign Investment<br />

Another Law important for PPP is the Law on Foreign Investment 23 . The Law<br />

regulates in which way a foreign natural or legal person may establish an enterprise<br />

or invest in one (i.e. buy a company or a part of it by purchasing that<br />

company‟s shares) under the same conditions as a domestic person. The foreign<br />

investor may invest through lease agreement, franchise, management and sale<br />

of real estate, and may also construct on grounds of BOT arrangement or a concession<br />

(Articles 12 and 13). As by the Law, when the Government of Montenegro<br />

is one of the contracting parties, it does not have rights exceeding the<br />

ones of the other contracting party (Article 28).<br />

4.4.12 Law on Waste Management/Waste Management Act<br />

The Law on Waste Management was adopted by the Parliament of Montenegro<br />

24 in 2005 and was planned to enter into force as of November 2008. Its full<br />

enforcement, however, began on 1 January 2010. This Law regulates types and<br />

classification of waste, waste management planning, provision of conditions for<br />

waste collection and treatment, rights, obligations and responsibilities of legal<br />

and physical entities in waste management, conditions and procedure for permits,<br />

defines principles for managing specific waste streams, sets a legal basis<br />

for regulation of waste incineration, supervision and other issues of importance<br />

to waste management.<br />

22 Institut Alternativ, op. cit.<br />

23 Official Gazette of GoM, No. 52/00<br />

24 "Official Gazette of RM" No. 80/05 and "Official Gazette of Montenegro", No. 73/08 and No.<br />

40/2011-1<br />

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For the local self-government this Laws is important from the aspect that its<br />

provides guidelines for the development of Local Waste Management Plans, in<br />

accordance with Waste Management Plan in Montenegro for 2008-2012, the<br />

Strategic Master Plan for Waste Management and Waste Management Plan in<br />

Montenegro for 2008-2012. In this aspect, several articles of the Law will be<br />

pointed out:<br />

• Article 17 – prescribes development and adoption of local plans, and provides<br />

basic content concept of the Local Plan<br />

• Article 20 – defines the implementation of waste management plan<br />

• Article 21 – determines the joint management of waste between several<br />

municipalities<br />

• Article 22 – states that: “The waste producer is obliged to prepare a waste<br />

management plan, if it produces annually more than 200 kg of hazardous<br />

waste or more than 40 tons of non-hazardous waste. Local selfgovernments<br />

may oblige the waste producer to provide information about<br />

the waste produced and its waste management methods, if it produces annually<br />

more than 10 tons of non-hazardous waste.”<br />

• Article 65 – governs the obligations of the landfill operator, which include:<br />

- identify waste quantity before acceptance to the landfill site<br />

- check waste being accepted against the information contained in the<br />

presented waste transfer note for match<br />

- deny acceptance of the waste in case of identified discrepancy between<br />

the waste being accepted and the information contained in the<br />

presented waste transfer note and immediately inform the competent<br />

authority of the state administration (environmental inspectorate)<br />

- provide selective waste disposal in order to prevent reaction of chemical<br />

elements of different types of waste and adverse effect on the environment<br />

and provide conditions for its further use and re-cultivation<br />

and rehabilitation of the landfill site area<br />

- provide proper functioning of the technical equipment operated at the<br />

landfill site and apply sanitary, hygienic, fire protection and health<br />

and safety at work regulations, in conformity with the law<br />

- inform the permit issuing authority (Ministry of Sustainable Development<br />

and Tourism) on the landfill closure and top cover<br />

- supervise the landfill site before and after the cessation of operations<br />

and provide a competent authority with the report on operating results<br />

for the calendar year by the end of first quarter of the next year<br />

- immediately inform the competent authority of the state administration<br />

(environmental inspectorate) on identified changes, indicating<br />

possible occurrences or presence of environmental risk.<br />

• Article 66a – addresses the issue of funds for landfill closure, as follows:<br />

- A waste producer shall pay all costs incurred by the disposal of waste<br />

at the landfill.<br />

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- The charge rate referred to in paragraph 1 of this Article shall be defined<br />

by the Government.<br />

- Funds for the costs related to maintenance and control after the landfill<br />

closure shall be defined in the permit for waste disposal issued for<br />

the period which cannot be shorter than 30 years.<br />

- Fund sources and amount for the costs referred to in paragraph 3 of<br />

this Article shall be provided by the local self-government units that<br />

use the landfill.<br />

This Law does not apply to the following wastes: radioactive waste; military<br />

waste; waste water discharged into surface water and sewage systems, except<br />

liquid waste; waste from slaughter houses, animal faeces, solid and liquid fertilizer<br />

and animal urine and other harmful substances of animal origin, substances<br />

that are used for cooling (liquid), soil and rock materials that are displaced in<br />

on-going investment projects, research or exploitation, processing and utilization<br />

of mineral resources, land clearing caused by cleaning of the seabed in<br />

order to maintain access to ports, cleaning the water reservoir of fish ponds,<br />

natural waterways or ditches with the aim of maintaining and regulating water.<br />

Several bylaws to the Law on Waste Management have also been promulgated.<br />

These are presented in the Annex.<br />

4.4.13 Law on Communal Services<br />

The new Draft Law on Communal Services 25 defines communal services, principles,<br />

conditions and methods of communal services, communal equipping of<br />

the construction land and other issues important for communal activities.<br />

Communal services within the Draft Law on Communal Services are the activities<br />

of public interest.<br />

Communal service, under this Law, is the provision of services and delivery of<br />

products, which are an indispensable condition for life and work of citizens,<br />

companies and other entities in the area of local government and maintenance<br />

of communal infrastructure, equipment and resources to perform these activities.<br />

Communal services, under this law are, including those related to solid waste<br />

management, such as municipal waste management and planning and maintenance<br />

of public areas.<br />

25 Official Gazette of GoM, no. 48/08 – draft amendments to the law are prepared and are in the Parliament<br />

for adoption<br />

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4.4.14 Law on Business Organization and its amendments<br />

The last amendment of the Law on Business Organization, 26 which came into<br />

force in early August 2011, introduced several organizational novelties:<br />

• Within six months, the Central Register of business organizations shall be<br />

established in Podgorica ("CRPS") and be managed by the Tax Authority.<br />

This Central Register will replace the existing one in the Commercial<br />

Court in Podgorica. A Registration application can be also submitted in<br />

branch offices of the Central Register.<br />

• By registering the company with CRPS, a tax identification number is assigned<br />

and at the request of the applicant a VAT registration number can<br />

be granted, as well as excise tax number.<br />

• Establishment of a company is now fully linked only with one Government<br />

body.<br />

• Government body in charge of registration of business needs to decide on<br />

refusal of application within four working days, whereas if this type of decision<br />

is not made, it is considered that a company is registered.<br />

• The new Law encompasses the provision withdrawing the mandatory use<br />

of stamps for the companies for their daily business operation.<br />

• So far, the obligation of companies to submit annual financial reports to<br />

CRPS is abolished.<br />

• The level of transparency on business restructuring is increased, as well as<br />

of and information provision to shareholders. The business is now required<br />

to publish in their website a notice convening the shareholders' assembly<br />

meeting. Upon a request of shareholders, business must sent notifications<br />

and materials via e-mail to shareholder, and the participation on the shareholder<br />

assembly meeting via e-mail is granted.<br />

• It is more precisely defined the provision of regulating acquisition of individual<br />

shares.<br />

4.5 Institutional set-up at local level<br />

The following section presents the institutional set-up at the local level with<br />

respect to solid waste management.<br />

Responsibilities<br />

4.5.1 Role of local self-government in solid waste management<br />

Montenegro has 21 local self-governments (divided into the capital city of<br />

Podgorica, the historic capital city of Cetinje, and 19 municipalities). Local<br />

self-governments have the responsibility to:<br />

• enforce legislation and regulations adopted by the State<br />

• ensure financial resources for their work and activities<br />

• adopt short-term and long-term programmes of activities and provide funding<br />

for their implementation<br />

26 Latest amendment: Official Gazette of Montenegro, no. 36/11. Previous amendments: Official Gazette<br />

No. 06/02 from 08.02.2002, 17/07 from 31.12.2007, 80/08 from 26.12.2008, 40/10 from 22 July<br />

2010, 36/11 from 27 July 2011.<br />

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37<br />

• determine prices of communal services<br />

• perform inspection tasks<br />

• collect taxes and impose fines<br />

• issue permits for the collection and treatment of waste at the local level.<br />

Solid waste<br />

management<br />

In the area of solid waste management, local self-governments have the responsibility<br />

to develop and implement solid waste management policy at the local<br />

level for each municipality individually or as joint waste management between<br />

system two or more municipalities. Their activities are reflected in:<br />

• Preparation and adoption of waste management programmes and plans for<br />

waste management in their territory (local waste management plans)<br />

• Joint programmes between two or more municipalities<br />

• Assessment of waste generation and plan for collection and transport<br />

• Preparation and implementation of waste treatment plan<br />

• Preparation of waste disposal plan<br />

• Waste generation reduction plan<br />

• Strengthening the capacity of public utility companies<br />

• Regulating the PUC‟s and private companies‟ work in the field of collection,<br />

transport and waste disposal<br />

• Advancing the permit system.<br />

According to the Republic-Level Solid Waste Strategic Master Plan, waste<br />

management requires a complete specialization, high level of knowledge and<br />

awareness in this area. It involves a high cost of facilities and equipment maintenance,<br />

major investments in modern technological solutions and high operating<br />

costs. Taking into account the unfavourable economic situation in the past<br />

two decades in the country, the optimal solution for Montenegrin municipalities<br />

in the area of solid waste management in accordance with European Union directives<br />

has been seen in building inter-municipal landfills with recycling centres<br />

and in establishing inter-municipal companies to manage such landfills and<br />

consider the interests of citizens.<br />

Responsibilities<br />

4.5.2 Role of Public Utility Companies<br />

At the local level in municipalities, the collection, transport, and disposal of<br />

solid waste are organized within Public Utility Companies (PUC), which are<br />

fully owned by municipalities. Pursuant to the Law on Communal Services<br />

(Official Gazette of GoM, no. 48/08 27 ), the organization of communal services<br />

on the local level is the responsibility of the local self-government. These<br />

services are usually just one aspect of the scope of communal services the PUC<br />

public utility provides. The local self-government may also assign these tasks<br />

to another company.<br />

As defined under the Law on Communal Services, communal services include:<br />

27 At the time of writing this report, the draft amendments to the law have been prepared and are in<br />

Parliament for adoption.<br />

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• maintenance of sanitation (cleaning public spaces, solid waste collection,<br />

stormwater sewer systems, etc.) in towns and other settlements<br />

• construction, maintenance and use of landfill<br />

• maintenance of parks, public green space and recreational areas<br />

• water supply<br />

• collection, treatment and disposal of wastewater<br />

• supply of heat<br />

• public transport in towns and other settlements<br />

• maintenance of streets, roads and other public spaces in towns and other<br />

settlements and public lighting, as well as construction, maintenance and<br />

use of local roads<br />

• construction, maintenance and use of bridges, public buildings and the<br />

maintenance and regulation of riverbeds<br />

• maintenance of cemeteries and burials<br />

• chimney services, maintenance of public toilets, maintenance of public<br />

bathrooms, dog pound, public parking space, maintenance of market and<br />

their services.<br />

Typically, a PUC provides several of these services.<br />

4.5.3 Inter-municipal waste management companies<br />

There are recent examples of establishment of inter-municipal waste management<br />

companies in Montenegro:<br />

• Municipality of Podgorica has established the company “Deponija” d.o.o.<br />

(Ltd.) to manage the newly constructed sanitary landfill in Podgorica for<br />

use by the Municipalities of Danilovgrad and Cetinje (through their PUCs)<br />

under the same conditions as the PUC “Ĉistoća” from Podgorica.<br />

• The Municipalities of Bar and Ulcinj established the company "Mozura"<br />

d.o.o on 4 November 2008 to manage their regional landfill.<br />

• The Municipalities of Nikšić, Pluţine and Šavnik established the company<br />

"Budoš" d.o.o on 5 March 2009 to manage their regional landfill.<br />

Another earlier example of an inter-municipal waste management company is<br />

"Lovanja" d.o.o., which was established to manage the landfill constructed in<br />

2004 for the disposal of waste collected from the Municipalities of Budva, Kotor<br />

and Tivat. This landfill was open for use until 2007, when those three municipalities<br />

were obliged to find and make an agreement on the permanent location<br />

for their regional sanitary landfill. After the unsuccessful process of determining<br />

a location for the permanent regional landfill for these municipalities,<br />

on 27 December 2007, the Government of Montenegro passed a Decision for<br />

concluding the issue of construction, maintenance and utilization of the regional<br />

sanitary landfill for the Municipalities of Budva, Kotor and Tivat as matter<br />

of public interest and effectively taking over the process. This Decision instructed<br />

the company "Lovanja" d.o.o to coordinate the construction, management<br />

and maintenance of a new joint landfill for these three municipalities.<br />

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4.5.4 Private sector participation in waste management<br />

According to the Law on Communal 28 the collection, transport and disposal of<br />

municipal solid waste, may be performed by private companies as well as public<br />

companies. According to the Law, the involvement of the private sector in<br />

carrying out these tasks should be based on:<br />

• transparency of the process of delegating these tasks<br />

• relevant technical and organizational capacities of companies or entrepreneurs<br />

• regulating effective partnership arrangements<br />

• signing appropriate agreements with the private partner on the basis of<br />

clearly defined relations, monitoring and control.<br />

The legal conditions for private sector participation in solid waste management<br />

are aimed at introducing market principles in performing the tasks of collection,<br />

transport and disposal of municipal solid waste, allowing the promotion of<br />

competition between public and private sectors. The intent is to foster effective<br />

and efficient waste management systems at the local level.<br />

4.5.5 Regulator of communal services<br />

Each municipality has a PUC that deals, among others, with solid waste management.<br />

The regulator of communal services at the local level is the municipality<br />

(local self-government) in accordance higher level legislation 29 . This includes<br />

the definition of the service area, the definition of service standards, and<br />

the approval of tariffs (fees) for services provided. On the other hand, the relationship<br />

between the local self-government and the PUC is governed under the<br />

Decision of the local assembly on the establishment and organisation of the<br />

work of the PUC. This decision is based on the Law on Communal Services<br />

and Law on Companies 30 and in turn forms the basis of the statute of the PUC.<br />

Performance-based contracts (or public service agreements, service level<br />

agreements, etc.) are not applied in the field of solid waste management in<br />

Montenegro.<br />

4.6 Development needs<br />

There are several areas of development needs for the solid waste management<br />

sector, as listed below:<br />

• Continued harmonisation of laws – in particular the “Law on waste” with<br />

the Directive on Waste 2008/98/EC is needed, in particular with respect to<br />

the hierarchy of waste, extended producer responsibility, preparation for<br />

28 Official Gazette of GoM, no. 48/08<br />

29 For example, the municipality cannot approve a location for a local or regional landfill; this falls<br />

under the competence of the national government. The Spatial Plan of Montenegro applies in the case<br />

of the landfill location.<br />

30 For example, the Decision on the establishment of the Niksic PUC refers to the Law on Companies,<br />

Official Gazette of the Social Republic of Montenegro no. 40/89 and the Law on Communal Services,<br />

Official Gazette of the Social Republic of Montenegro no. 7/90.<br />

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reuse, recycling, biodegradable waste, content of local waste management<br />

plans, prevention of waste generation, etc.<br />

• Local capacity for planning and management of waste collection and landfills<br />

– there remains one regional landfill in the country and experience in<br />

landfill management is limited. Capacity development programmes for local<br />

governments, PUCs, regional landfill companies, etc. are needed.<br />

• Support to local governments and PUCs in the calculation of tariffs for<br />

solid waste collection and disposal.<br />

• Financial support to municipalities in the construction of regional landfills,<br />

as well as support in implementing cost covering tariffs for solid waste collection<br />

and treatment services. Financial support for care of landfills after<br />

their closure should also considered since according to the Law on waste<br />

management, this is the responsibility of the local government (and not the<br />

landfill operator, as in the Landfill Directive).<br />

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5 Waste Generation in Nikšić Area<br />

This chapter discusses factors affecting the amount of solid waste generated in<br />

the area to be covered by the regional landfill in Nikšić since the Feasibility<br />

Study. Further, based on existing studies, it provides a review of forecasts of<br />

waste generation in the area for the lifetime of the landfill.<br />

Macroeconomic<br />

indicators<br />

5.1 Review of national economic development<br />

parameters<br />

The basic macroeconomic indicators for 2011 for Montenegro are presented in<br />

the following table 31 .<br />

Table 2 Economic indicators of Montenegro, 2012<br />

Feb 2012<br />

GDP in current prices, in million EUR 3,394<br />

GDP real growth rate, in % (2011) 2.5<br />

Inflation, in % 2.7<br />

Employment growth, in % 1.9<br />

Unemployment rate, in % 11.9 32<br />

Current account balance of payments, in GDP% -19.3<br />

Total government debt, in million EUR 1,473.2 33<br />

Total government debt, as % GDP 43.4<br />

Net foreign direct investments, as % GDP 17.3<br />

Public spending, as % of GDP 20.8<br />

Growth in household consumption, % 2.1<br />

Source: Ministry of Finance of the Republic of Montenegro<br />

31 Economic and Fiscal Program of Montenegro 2010-2013 from January 2011; Feb 2012 (Monthly<br />

Macroeconomic Indicators, Ministry of Finance (MoF) of Montenegro<br />

32 Data from Feb 2012 (Monthly Macroeconomic Indicators, MoF); According to IMF Labour force<br />

definition, the unemployment rate was 20% (Preliminary conclusions of the Mission of the International<br />

Monetary Fund, March 5, 2012).<br />

33 Ministry of Finance, Statement: Data on Government Debt and Issued Guarantees, as of 31 January<br />

2012. As of 31 January 2012, the government debt of Montenegro was 1,473.2 million euro or 43.4%<br />

of GDP. Internal debt was 419 million euro or 12.3% of GDP, while the foreign debt was 1,054.2<br />

million euro or 31.0% of GDP.<br />

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The basic economic indicators cited in the foregoing table point to a fairly<br />

healthy economy, with a positive GDP growth rate, continued declines in unemployment,<br />

but which increasing debt as a percentage of GDP. Consumer<br />

spending continues to increase.<br />

In summary, the main development problems that Montenegrin municipalities<br />

currently face are: high levels of unemployment, underdeveloped infrastructure,<br />

low household income, low local government revenues, ageing population, low<br />

population density, and lack of capacity of local governments for strategic<br />

planning.<br />

5.2 Review of forecasts for waste generation<br />

One of the most important planning instruments for the sustainable and longterm<br />

implementation of waste management system is a sound database regarding<br />

current waste generation and qualities.<br />

The data and information compiled were mainly from information holders out<br />

of the 21 Montenegrin municipalities in the period November 2003 - February<br />

2004 on waste related issues supported by available statistical data and own<br />

assumptions of the corresponding consultants.<br />

Planning perspective<br />

On the basis of the Strategic Master Plan (2004) the perspective is based on the<br />

following assumptions:<br />

• The estimated demographic growths for the municipalities based on the<br />

relevant regions are given below:<br />

- Central Region – projected population growth is +0.81% for Nikšić<br />

- Mountain Region – projected population growth is -0.68% for Pluţine<br />

and Šavnik<br />

• Waste generation, as was divided into regions, is as follows:<br />

- Central Region - 0.80 kg/cap/day for Nikšić<br />

- Mountain Region - 0.60 kg/cap/day for Pluţine and Šavnik<br />

- Tourists - 1.5 kg/cap/day per overnight stay<br />

- Refugees - 0.25 kg/cap/day<br />

• Extension of the service area for collections in the short-term (from 2005<br />

to 2009):<br />

- in urban areas, stepwise increase in the service area from 85% to 92%<br />

of total area<br />

- in rural areas (population over 190 inhabitants), stepwise increase<br />

from 15% to 27%.<br />

• Extension of the service area for collections for the medium-term (from<br />

2010 to 2014):<br />

- in urban areas, stepwise increase of the service area from 93.3% to<br />

100% of the total area<br />

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- in rural areas (population over 190 inhabitants) stepwise increase in<br />

the service area from 48.3 % to 75%.<br />

• Increase in source separation of several recyclable fractions in accordance<br />

with the Master Plan.<br />

The Feasibility Study for Nikšić Regional Solid Waste Landfill was prepared in<br />

2008 according to the Republic-Level Solid Waste Strategic Master Plan in<br />

Montenegro and used same the criteria.<br />

Baseline data<br />

The baseline data for preparation of the Feasibility Study were the amount of<br />

solid waste produced in the municipalities of Nikšić, Pluţine and Šavnik since<br />

2004. Accordingly, the calculated amount of solid waste is about 15,800 tons<br />

per year, distributed as follows:<br />

Table 3 Population and waste generation of the Nikšić catchment area, 2004<br />

Municipalities<br />

Census<br />

2003<br />

Municipal Solid Waste<br />

Generated Recycled<br />

Disposed<br />

Share recycled<br />

and disposed<br />

person [t/a] [t/a] [t/a] [%]<br />

Nikšić 75,274 22,334 0 15,251 68<br />

Plužine 4,270 951 0 349 37<br />

Šavnik 2,938 645 0 161 25<br />

Total 82,482 23,930 0 15,761 66<br />

Source: Republic-Level Solid Waste Strategic Master Plan of Montenegro, 2005<br />

Given the time that had passed between the preparation of the Master Plan and<br />

the Feasibility Study, the latter undertook a verification of data on the quantity<br />

of waste set out in the Master Plan, as follows:<br />

• In the years since the approval of the Strategic Master Plan, the total<br />

amount of municipal waste in the Municipality of Nikšić increased from<br />

about 22,334 tons in 2004 to a projected 23,893 tons in 2009. This is<br />

caused by population growth of 0.81% (increase in waste producers) and<br />

gross domestic product (GDP) increase of 2.5%. According to the Feasibility<br />

Study, these factors resulted in an overall increase in waste generation<br />

over the period 2004-2009 by about 5%.<br />

• According to the Feasibility Study, for Pluţine the total amount of waste<br />

generated changed slightly from about 951 tons in 2004 to a projected<br />

944 tons in 2009. This was due to a population decline of -0.68% (fewer<br />

waste producers) that was not compensated by the GDP growth of 2.5%.<br />

These factors caused a slight decrease in waste generation during the period<br />

2004-2009.<br />

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• According to the Feasibility Study, Šavnik was in the same situation as<br />

Pluţine, with the generated waste changing slightly from about 645 tons<br />

in 2004 to about 642 tons in 2009.<br />

Table 4<br />

Generated amounts (t/year) of municipal waste for Nikšić, Plužine and<br />

Šavnik, from 2004 to 2009<br />

2004 2005 2006 2007 2008 2009 Total<br />

Nikšić 22,334 22,636 22,942 23,254 23,571 23,893 138,630<br />

Plužine 951 950 949 947 946 944 5687<br />

Šavnik 645 644 644 643 642 642 3860<br />

Total 23,930 24,230 24,535 24,844 25,159 25,479 148,177<br />

Source: Feasibility Study for Nikšić Solid Waste Landfill, 2008<br />

Waste generation<br />

As evident from the preceding data, the overall increase in waste generated in<br />

the Nikšić for the period 2004-2009 was expected to be 1,559 tons, equivalent<br />

to 260 t/year. In Pluţine, as well as in Šavnik, less waste was generated in 2009<br />

than in 2004. This is in accordance with the data on decreased population.<br />

Next, the Feasibility Study included waste generation forecasts for the period of<br />

2010-2029. The overall summary of waste generation, as well as disposal and<br />

recycling forecasts over the twenty year design period of 2010-2029 is presented<br />

in the following tables.<br />

Table 5 Total amount of waste in Nikšić, Plužine and Šavnik, in tons, 2010-2029<br />

Nikšić Plužine Šavnik Total<br />

2010–2014<br />

Disposed 89,168 2,388 1,379 92,935<br />

Recycled 16,389 540 343 17,272<br />

Uncollected 18,926 1,780 1,472 22,178<br />

Generated 124,483 4,708 3,194 132,385<br />

2015–2019<br />

Disposed 90,122 2,321 1,408 93,852<br />

Recycled 31,301 1,054 681 33,036<br />

Uncollected 11,584 1,229 1,036 13,849<br />

Generated 133,007 4,605 3,125 140,737<br />

2020–2029<br />

Disposed 163,124 3,692 2,269 169,086<br />

Recycled 114,212 3,415 2,277 119,905<br />

Uncollected 15,899 1,687 1,422 19,008<br />

Generated 293,235 8,795 5,968 307,998<br />

Source: Feasibility Study for Nikšić Solid Waste Landfill, 2008<br />

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Table 6 Total amount of waste generated, in tons, 2010-2029<br />

Disposed Recycled Uncollected Generated<br />

2010-2014 92,935 17,272 22,178 132,385<br />

2015-2019 93,852 33,036 13,849 140,737<br />

2020-2029 169,086 119,905 19,008 307,998<br />

2010-2029 355,873 170,213 55,034 581,120<br />

Source: Feasibility Study for Nikšić Solid Waste Landfill, 2008<br />

Table 7 Total amount of waste generated, disposed and recycled from 2010 to 2029<br />

Disposed Recycled Uncollected Generated<br />

Nikšić 342,415 161,902 46,408 550,725<br />

Plužine 8,402 5,010 4,696 18,108<br />

Šavnik 5,056 3,301 3,930 12,287<br />

Total 355,873 170,213 55,034 581,120<br />

Source: Feasibility Study for Nikšić Solid Waste Landfill, 2008<br />

Feasibility Study<br />

As can be seen in the foregoing tables, to forecast the amount of waste, the<br />

Master Plan and Feasibility Study were based on the 2003 census and the estimated<br />

demographic growth for each of the three municipalities.<br />

According to the Feasibility Study the proposed landfill will have area of about<br />

23,000 m², or 2.3 hectares. As calculated, the waste generated in the period of<br />

2009-2029 is expected to be 355,873 tons. With an anticipated volume of<br />

290,653 m³ of waste and a calculated maximum landfill capacity of 30.000 m³,<br />

the lifetime of the landfill was estimated to be approximately 15 years. On the<br />

other hand, the updated main design, which is currently under a review/approval<br />

process, anticipates a landfill lifetime of 20 years. This is now the assumption<br />

under which the Municipality of Nikšić should operate.<br />

Demography The Feasibility Study presents estimates on population growth for the 2008-<br />

2029 period in accordance with the requirements of the project and using the<br />

assumptions outlined in the Master Plan. This is summarized in Table 8.<br />

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Table 8 Population of Nikšić, Plužine and Šavnik, 2007-2029<br />

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018<br />

Nikšić 75,274 75,884 76,498 77,118 77,743 78,372 79,007 79,647 80,292 80,943 81,598 82,259<br />

Plužine 4,272 4,243 4,214 4,185 4,157 4,129 4,101 4,073 4,045 4,018 3,990 3,963<br />

Šavnik 2,972 2,952 2,932 2,912 2,892 2,872 2,853 2,833 2,814 2,795 2,776 2,757<br />

Total Population 82,518 83,078 83,644 84,215 84,792 85,373 85,961 86,553 87,151 87,755 88,365 88,979<br />

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029<br />

Nikšić 82,926 83,597 84,274 84,957 85,645 86,339 87,038 87,743 88,454 89,170 89,893<br />

Plužine 3,936 3,909 3,883 3,856 3,830 3,804 3,778 3,753 3,727 3,702 3,677<br />

Šavnik 2,738 2,720 2,701 2,683 2,665 2,647 2,629 2,611 2,593 2,575 2,558<br />

Total Population 89,600 90,226 90,858 91,496 92,140 92,790 93,445 94,106 94,774 95,447 96,127<br />

Source: Feasibility Study for Nikšić Solid Waste Landfill, 2008<br />

The 2011 Census, however, reveals different a population growth trend, as<br />

shown in the following table.<br />

Table 9<br />

Municipality<br />

Population by municipality and settlement type<br />

Population of<br />

Municipality<br />

Census 2003 Census 2011<br />

Urban<br />

area<br />

Rural<br />

area<br />

Population of<br />

Municipality<br />

Urban<br />

area<br />

Rural<br />

area<br />

Montenegro 620,145 620,029<br />

Nikšić 75,274 58,358 16,916 72,443 59,670 12,773<br />

Plužine 4,270 1,494 2,776 3,246 1,341 1,905<br />

Šavnik 2,938 568 2,370 2,070 472 1,598<br />

Total 82,482 60,420 22,062 77,759 61,483 16,276<br />

Source: Republic Level Solid Waste Strategic Master Plan of Montenegro, 2005 and Census<br />

of the Republic of Montenegro, 2011<br />

Clearly, the population in the Nikšić Service Area has decreased by 4,723 between<br />

the two censuses. A migration of the population from rural to urban areas<br />

is also evident; while the population data reveal a decrease in the population of<br />

the Municipality of Nikšić by 2,831, the population of the urban area of Nikšić<br />

increased by 1,312. The population of the Municipality of Pluţine fell by 1,024<br />

and in its urban area by 153. In the Municipality of Šavnik, these figures fell by<br />

868 and 96, respectively. Compared to the estimates from the Feasibility Study<br />

(84,972 for 2011), on the other hand, the population from the 2011 Census was<br />

less 7,213.<br />

Assumptions<br />

A new, rough calculation of waste generation in accordance with the new<br />

statistical data and based on the following assumptions can be made:<br />

• Total population in 2011 is 77,759 (2011 Census)<br />

• Waste generation in 2011 is 22,000 t/year<br />

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• In accordance with "The demographic trends in Montenegro since the<br />

mid-20th century and prospects to 2050" (MONS<strong>TA</strong>T 2008), the population<br />

in Montenegro in 2050 would be higher than for the starting year<br />

2005. The results of the projection confirm that the process of depopulation,<br />

which in the northern region will probably continue at least until<br />

2015. For this reason, waste generation of 22,000 t/year over the period<br />

2013-2017 may be expected.<br />

• Percentage of recycled and uncollected waste will be 30% over the period<br />

2013-2017 (recycled 13%, uncollected 17%).<br />

• Increase in waste generation for the region over the period 2018-2022<br />

will be about 6% due to the estimated demographic growth of +0.81%<br />

(increase in waste producers) and GDP of +2.5%.<br />

• Percentage of recycled and uncollected waste will be 33% over the period<br />

2018-2022 (recycled 23%, uncollected 10%).<br />

• Increase in waste generation for the region over the period 2018-2022<br />

will be about 8%.<br />

• Percentage of recycled and uncollected waste will be 55% over the period<br />

2023-2030 (recycled 38%, uncollected 17%).<br />

Table 10 Waste generation forecast, 2013-2030<br />

Period Generated Recycled Uncollected Disposed<br />

2013-2017 113,525 14,758 19,300 79,467<br />

2018-2022 120,336 27,677 12,034 80,625<br />

2023-2030 207,936 79,015 14,557 114,364<br />

2013-2030 441,797 121,450 45,891 274,456<br />

Source: Consultant's assessment based on changing population growth data<br />

Landfill volume<br />

According to the foregoing table, solid waste in the amount of 274,456 tons<br />

will be disposed at the landfill over the period 2013-2030. Since the assumed<br />

density of compacted waste is 950 kg/m³, a landfill volume of 288,179 m³ net is<br />

needed for the waste.<br />

Assuming that 16% of inert material is necessary for covering, the value of total<br />

volume is 334.287 m³.<br />

Taking into account the value of available landfill volume of 330.000 m³ and<br />

the expected amount of generated waste for the following period, it can be concluded<br />

that based on current parameters that the landfill can be designed for the<br />

period of 18 years.<br />

The Nikšić PUC, in its services for the collection and disposal of waste, submitted<br />

information about collection of more than 40,000 tons waste per year. This<br />

assumption is based on the volume of solid waste transport trucks and the number<br />

of trips to the current dump; it is not based on measurements from a waste<br />

scale. The PUC also confirms that this amount includes waste from illegal<br />

dumps, construction and demolition waste, green waste and communal waste<br />

without any selection and recycling. The PUC concurs with the Consultant‟s<br />

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rough calculation on the condition that the future landfill dispose only communal<br />

solid waste and not that intended for recycling, composting, etc.<br />

From the foregoing discussion, it is evident that the waste stream generated in<br />

the Nikšić Service Area is likely to decline mainly due to a decline in population.<br />

Legislative changes, in particular affecting packing waste, waste to be<br />

composted, and demolition waste, will serve to reduce the amount of waste deposited<br />

at the future regional landfill, thereby extending its assumed useful lifetime.<br />

This conclusion should be checked with the main design of the landfill,<br />

when it becomes available, and is addressed in the report for Activity 3.<br />

Overall, harmonisation with the Directive on Waste (2008/98/EC) will require<br />

that priority is given to the prevention of waste generation, preparation for reuse<br />

of waste and recycling of waste. The last option is to be disposal of waste.<br />

Recycling should also be gradually increased – up to 60% of dry fractions of<br />

municipal waste (paper, glass, metal and plastic) and 50 % of bio-waste (biodegradable<br />

kitchen waste and plant waste). Meeting these objectives would<br />

likely enable the Nikšić regional landfill to have a useful lifetime of a period of<br />

20 years or more.<br />

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6 Case Study Nikšić<br />

The following case study provides an overview of the institutional setting in the<br />

area that will be serviced by the Nikšić regional landfill. The case study will be<br />

expanded in the report for Activity 3 (Procurement Options Report).<br />

6.1 Nikšić<br />

6.1.1 Basic information - Nikšić<br />

Nikšić is located in the karst area of north-west of Montenegro. It is the second<br />

largest city in Montenegro, representing a major link point between the coast<br />

and north of the country. It is one of largest industrial centres of Montenegro,<br />

with a steel mill (Nikšićka Ţeljezara), bauxite mine, Trebjesa brewery<br />

(Nikšićka Pivara), and other businesses, such as MON<strong>TA</strong>VAR Metalac, Meat<br />

Industry Goranović, Nika and Srna dairy, MIRAI Javorak, hydropower complex<br />

of Upper Zeta, and HTPO nogošt, etc.<br />

Demography<br />

By the last Census of the Population, Households and Dwellings of<br />

Montenegro in 2011 34 , the Municipality Nikšić, together with its suburbs has<br />

population of 72,443 (11.68 % of the entire population of Montenegro).<br />

Table 11<br />

Key data on Nikšić<br />

Category Year Value Source<br />

Population 2011 72,443 Census<br />

Change in population 2003 – 2011 75,282 (2003) -4% Census<br />

Municipal budget expenditures 2010 EUR 15.8 m Financial report<br />

Municipal budget expenditures per capita 2010 EUR 219 Financial report / Census 2011<br />

No of local government employees 2010 /2011 574/435<br />

Recently employed 2011 13 (trial employees) -<br />

Leaving employees/retiring 2011<br />

32 (retiring) + 107 (end of contract by mutual<br />

understanding) (municipality only 35 )<br />

Ministry of Internal Affairs Report /<br />

Office of Municipality Manager<br />

Office of Municipality Manager<br />

Training budget 2010 EUR 2,333 Financial report<br />

34 MONS<strong>TA</strong>T<br />

35 That is, does not include total employment at the local self-government, such as at PUC.<br />

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6.1.2 Local government<br />

In accordance with the Law on Local Self-Government 36 , the functional structure<br />

of local government of Nikšić is established. The internal organization of<br />

the Nikšić local government is based on the principles of: lawful and timely<br />

performance of tasks; application of IT in work methods; grouping of related<br />

and interconnected operations; and providing full control and responsibility in<br />

performing the work. In the process of government rationalization, required in<br />

the accession process to the EU, the number of employees in the Municipality<br />

Nikšić has decreased from 574 in March 2010 to 435 in 2011 37 .<br />

Organization<br />

For the efficient operation of the Nikšić local government, in accordance with<br />

the Law, the statute of the municipality and other regulations, bodies and local<br />

government services have been established. The secretariat, directorates, agencies<br />

and bureaus have been established as bodies of the Municipality.<br />

ORGANISATION OF THE LOCAL SELF-GOVERNMENT<br />

PRESIDENT OF THE MUNICIPALITY<br />

MAIN ADMINISTRATOR<br />

BODIES OF LOCAL SELF-GOVERNMENT<br />

SPEICIAL ORGANS<br />

Communal police<br />

SERVICE ORGANS<br />

President Office<br />

SECRE<strong>TA</strong>RIATS Bureau DIRECTORATES<br />

Protection and rescue service<br />

Center for information systems<br />

Main Administrator Office<br />

Main Manager Office<br />

Secretariat for local selfgovernment<br />

Bureau for local<br />

public revenues<br />

Directorate for<br />

property<br />

Service for internal audit<br />

Office for common tasks<br />

Secretariat for finances,<br />

development and business<br />

Secretariat for urban planning<br />

and environmental protection<br />

Secretariat for communal<br />

services and transport<br />

Secretariat for culture, sport,<br />

young people and social affairs<br />

Figure 2<br />

Source: Municipality of Nikšić<br />

Organisational chart of the Municipality of Nikšić<br />

6.1.3 Nikšić Public Utility Company<br />

Nikšić PUC was established on 9 May 1990 38 . The obligation and activities of<br />

the PUC are: collection, removal and disposal of communal waste, cleaning<br />

36 Official Gazette of GoM No. 42/03, 28/04, 75/05, 13/06 (88/2009, 3/2010).<br />

37 The Strategy of Public Administration Reform for 2010-2015, aimed at functional and fiscal decentralization,<br />

as well as at providing direct financial and material resources to local governments for<br />

their operation, foresees more cost-effective and optimal functioning of local government, in particular<br />

in terms of personnel.<br />

38 Previously, it operated as part of the Work organization for communal services of Nikšić.<br />

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streets, sidewalks, squares, green and other public areas, landscaping of public<br />

areas, cleaning of urban, suburban and local roads of snow and ice of the market<br />

services and market activity, funeral services and burial activity.<br />

Nikšić PUC calculates and recommends to the local government for adoption<br />

fees for collection of solid waste.<br />

Table 12<br />

Basic data on Nikšić PUC<br />

Category Year Value Source<br />

No of employees 2012<br />

Employees dealing with waste 2012<br />

191 in total<br />

165 permanent<br />

26 contracted for specific period<br />

49 in total<br />

31 permanent<br />

18 contracted for specific period<br />

PUC Nikšić<br />

PUC Nikšić<br />

Share of PUC revenues from<br />

waste management services<br />

2012 61.81% PUC Nikšić<br />

Amount of waste collection/annual<br />

2011<br />

42,000 tonnes annually<br />

3,500 tonnes/month<br />

PUC Nikšić<br />

Fee for waste collection 2012<br />

Number of invoices issued 2012<br />

0.071 EUR/ m 2 (with VAT) city households<br />

0.060 EUR/ m 2 (with VAT) suburb households<br />

0.004 – 0.321 EUR/ m 2 (with VAT) legal entities (public<br />

and private)<br />

59,815 EUR/monthly – households<br />

34,807 EUR/monthly – legal entities<br />

PUC Nikšić<br />

PUC Nikšić<br />

Capacity Capacity of the PUC Nikšić is as follows 39 :<br />

• Numbers of users of municipal services are 1,014 corporate and 14,393<br />

households. The daily amount of waste disposed: 350 - 400 m 3 , or approximately<br />

120 tons.<br />

• Number of containers:<br />

- 400 pieces of 1.1 m 3 and<br />

- 70 pieces of 5 m 3 .<br />

• Number of available vehicles for the transport of waste:<br />

- 5 loaders for the removal of 5 m 3 containers (year of production: 1984,<br />

1986, 1987, 1990 and 1993)<br />

- 6 trucks for emptying 1.1 m 3 containers (two-1985, two-1990 and two<br />

2004)<br />

- One cleaner (year of production: 1985)<br />

39 According to the information received from PUC Niksic.<br />

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• Organizational structure: technical sector, economic-financial sector, and<br />

legal, human resources and general affairs sector.<br />

Waste management<br />

plan<br />

The Municipality of Nikšić developed and adopted a local waste management<br />

plan for 2009-2014 in 2009, in accordance with National Waste Management<br />

Policy and the Strategic Master Plan for Waste Management and defining medium-term<br />

objectives and conditions for the rational and sustainable management<br />

of waste in the municipality of Nikšić.<br />

6.2 Plužine<br />

6.2.1 Basic information - Plužine<br />

The Municipality of Pluţine is one of the youngest towns in Balkans, due to the<br />

fact that today‟s town of Pluţine was built in late 1970s at the banks of Piva<br />

Lake, since the previous location at a much lower altitude was flooded after<br />

building of the Hydropower plant Piva. The main economic actors in the Municipality<br />

are: Hydropower Plant Piva, Plant for production of Electrodes,<br />

Wood processing in Brezna, Montenegro Forestry-organizational unit Pluţine,<br />

agriculture and trade.<br />

Table 13<br />

Key data on Plužine<br />

Category Year Value Source<br />

Population 2011 3.246 MONS<strong>TA</strong>T<br />

Change in population 2003 – 2011 -24% MONS<strong>TA</strong>T<br />

Municipality expenditures 2010. EUR 3.2 m Financial report<br />

Municipality expenditures by per person 2010 EUR 997 (2/21) Financial report / Census 2011.<br />

No of employees /local government 2010 34 Ministry of Internal Affairs report<br />

Surplus/Deficit Ministry of Internal Affairs report ) 2010 10 Ministry of Internal Affairs report<br />

Recently employed (last year) 2011 0 -<br />

Leaving employees/retiring 2011 9-15 -<br />

No of employees 2011 31 Employee register<br />

Training budget 2010 None -<br />

6.2.2 Local government<br />

The following chart shows the organisational scheme of the Municipality of<br />

Pluţine.<br />

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Local<br />

Parliament<br />

President of the<br />

Municipality<br />

Main<br />

Administrator<br />

State Secretary of<br />

Local Parliament<br />

Cabinet<br />

Manager (1) Secretariat (1)<br />

Public Revenue<br />

Bureau (3)<br />

Communal<br />

Police (1)<br />

Dep. for<br />

Protection (1)<br />

Information<br />

centre (1)<br />

Public property right<br />

Ombudsman (2)<br />

Independent<br />

referents (6)<br />

Dep. For budget<br />

(2)<br />

Joint Admin.<br />

Bureau (6)<br />

Figure 3<br />

Organisational chart of the Municipality of Plužine<br />

Source: Municipality of Plužine<br />

6.2.3 Plužine Public Housing and Utility Company<br />

The Pluţine PHUC (which also deals with housing as well) has the following<br />

obligations and undertakes the following activities: collection, removal and<br />

disposal of communal waste, maintaining water and communal infrastructure,<br />

cleaning streets, sidewalks, squares, green and other public areas, landscaping<br />

of public areas, cleaning of urban, suburban and local roads of snow and ice of<br />

the market services and market activity, road maintenance, funeral services and<br />

burial activity.<br />

Table 14<br />

Basic data on Plužine PHUC<br />

Category Year Value Source<br />

No of employees 2012 27 in total / 22 permanent / 5 seasonal PHUC Plužine<br />

Employees dealing with waste 2012 5 in total PHUC Plužine<br />

Waste management income share activities<br />

compared to other PUC responsibilities<br />

2012 20 % PHUC Plužine<br />

Amount of waste collection/annual 2011 727 tons annually PHUC Plužine<br />

Fee for waste collection 2012<br />

Invoices issued 2012<br />

0.072 EUR/ m 2 (with VAT) households<br />

0.022 – 0.40 EUR/ m 2 (with VAT) legal entities<br />

(public and private)<br />

6,595 EUR/month – households<br />

73,222.20 EUR/month – legal entities<br />

PHUC Plužine<br />

PHUC Plužine<br />

Capacity Capacity of the PHUC Pluţine is as follows 40 :<br />

• Number of users of municipal services is 415 corporate and 46 households.<br />

The daily amount of waste disposed: on average 80 m 3 of waste per month<br />

(in summer season more, in winter season less).<br />

40 (by the information received from PHUC Pluţine):<br />

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• Number of containers 41 :<br />

- 12 pieces of containers for selective waste collection<br />

- Waste disposal bins of 50 litres on 10 locations<br />

- 60 pieces of containers of 1.1. m 3 .<br />

• Number of available vehicles for the transport of waste:<br />

- 1 compactor truck (up to 15 m 3 ) – 4 years old<br />

- 1 truck for carrying open containers – 3 m 3 containers (35 years old)<br />

- Zastava truck 50.8/ 3 tons/ - extended cabin (30 years old)<br />

- One cleaner (year of production: 1985).<br />

• Organizational structure: technical sector, economic-financial sector, and<br />

legal, human resources and general affairs sector.<br />

Waste management<br />

plan<br />

The Municipality of Pluţine has developed and adopted a local waste management<br />

plan for 2010-2014 by the end of 2008. After the implementation of several<br />

amendments and changes, the Ministry of Spatial Planning and Environment<br />

(the line ministry at that time) approved the plan in November 2010.<br />

6.3 Šavnik<br />

6.3.1 Basic information - Šavnik<br />

The Municipality Šavnik is one of the least developed municipalities in Montenegro.<br />

According to the 2011 Census of Montenegro, the Municipality of Šavnik<br />

had 2,070 inhabitants, representing a drastic decrease compared to 1991<br />

when the number of inhabitants in the municipality was 3,690. However, Šavnik<br />

has great natural resources and landscapes rich in biodiversity. The city has<br />

a good strategic position due to the proximity of regional tourism destinations<br />

in the north of Montenegro (Durmitor National Park, ski resorts at Savin Kuk<br />

and Ţabljak). The municipality also has excellent wind and hydro potential for<br />

power generation from hydro and wind power generation that would be used to<br />

service the future needs of the Municipality of energy, while the surplus could<br />

be sold to other municipalities and countries in the region. Good transport links<br />

with Šavnik, Nikšić, Kolašin, Ţabljak and Pluţine, allows easier access to citybased<br />

resources.<br />

Table 15<br />

Key data on Šavnik<br />

Category Year Value Source<br />

41 (source Pluţine Local waste management plan for 2010-2014)<br />

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Population 2011 2.070 MONS<strong>TA</strong>T<br />

Change in population 2003 – 2011 -30% MONS<strong>TA</strong>T<br />

Municipality expenditures 2010. EUR 959.000 Financial report<br />

Municipality expenditures per capita 2010 EUR 219 (14/21) Financial report / Census 2011.<br />

No of employees /local government 2010 37 Ministry of Internal Affairs report<br />

Surplus/Deficit Ministry of Internal Affairs report 2010 13 Ministry of Internal Affairs report<br />

Recently employed (last year) 2011 - -<br />

Leaving employees/retiring 2011 - -<br />

No of employees 2011 51 Employee register<br />

Training budget 2010 EUR 200 -<br />

6.3.2 Local government<br />

The organizational structure of Šavnik local government as is in the following<br />

table.<br />

Local Parliament<br />

President of the<br />

Municipality<br />

Main<br />

Administrator<br />

State Secretary of<br />

Local Parliament<br />

Bureau for specific administrative and<br />

technical tasks<br />

Secretariat<br />

Bureau for<br />

Protection<br />

Communal Police<br />

Figure 4<br />

Source: Municipality of Šavnik<br />

Organisational chart of the Municipality of Šavnik<br />

Within the new organization in the Municipality of Šavnik, the waste management<br />

activities are located in the newly established (in process of establishing)<br />

Secretariat for urban planning and communal affairs 42 .<br />

6.3.3 Šavnik Public Utility Company (PUC)<br />

The Šavnik PUC was established on 8 May 2007. The obligation and activities<br />

of the PUC are: collection, removal and disposal of communal waste, wastewater<br />

collection and treatment, maintaining water and communal infrastructure,<br />

cleaning streets, sidewalks, squares, green and other public areas, landscaping<br />

of public areas, cleaning of urban, suburban and local roads of snow and ice of<br />

the market services and market activity, funeral services and burial activity, and<br />

road maintenance.<br />

Table 16<br />

Data on Šavnik PUC<br />

42 (Source: information received from the Municipality Šavnik)<br />

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<strong>Infrastructure</strong> <strong>Projects</strong> <strong>Facility</strong> – <strong>Technical</strong> <strong>Assistance</strong> <strong>Window</strong><br />

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Operation of Regional Landfills in Montenegro<br />

56<br />

Category Year Value Source<br />

No of employees 2012<br />

Employees dealing with waste 2012<br />

Secretariat for urban planning and communal<br />

affairs is in process of establishment<br />

-<br />

PUC Šavnik<br />

PUC Šavnik<br />

Waste management income share activities<br />

compared to other PUC responsibilities<br />

2012 - PUC Šavnik<br />

Amount of annual waste collection 2011<br />

Fee for waste collection 2012<br />

Invoices 2012<br />

-<br />

0.03 EUR/ m 2 (with VAT) households<br />

0.03 – 0.30 EUR/ m 2 (with VAT) legal entities<br />

(public and private)<br />

6,595 EUR/month – households<br />

73,222.20 EUR/month – legal entities<br />

PUC Šavnik<br />

PUC Šavnik<br />

PUC Šavnik<br />

The Municipality Šavnik has not developed a local waste management plan.<br />

6.4 Regional landfill for Nikšić, Šavnik and Plužine<br />

6.4.1 Current status<br />

The regional landfill for the municipalities of Nikšić, Šavnik and Pluţine is<br />

planned to be located in the municipality of Nikšić, at the locality of Budoš.<br />

After the Decision of the three Municipalities – Nikšić, Šavnik and Pluţine –<br />

jointly to manage the communal waste disposal activities, the limited liability<br />

Company “Budoš” was established in March 2009. In addition, amendments to<br />

the Spatial Plan of the Municipality of Nikšić related to landfill construction<br />

were approved in November 2009. Taking into account that the land at the envisaged<br />

construction site for sanitary landfill was private property, the instrument<br />

of determining the land of the public interest for the expropriation process<br />

was used when the local parliament of Nikšić municipality made such decision.<br />

The municipality of Nikšić submitted the request to Cadastral Unit for land expropriation<br />

in December 2009, and this request was processed.<br />

Feasibility Study<br />

A Feasibility Study for the Regional Landfill Construction project in Nikšić (to<br />

the level of Preliminary Design) was prepared at the end of 2008 43 . In 2009, a<br />

company was hired to prepare a Main Design 44 , the preparation and revision of<br />

which is in progress. As stipulated by the national legislation, the EIA is in the<br />

process of preparation through a technical assistance project 45 . Relevant data<br />

for completion of the EIA will be provided after finalization of the main design.<br />

According to the Draft Main Design, the total amount of funds required for the<br />

works on landfill construction is EUR 16,573,000, with expected object life-<br />

43 Spanish Company EPTISA, Spain<br />

44 IK Consulting, Belgrade<br />

45 The EIA is financed by the WBIF <strong>IPF</strong> and implemented by the COWI <strong>IPF</strong> Consortium<br />

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time of 20 years. The approximate amount, required for the construction of the<br />

Phase I, is EUR 9,200,000.<br />

6.4.2 BUDOŠ, Ltd<br />

For the purpose of the operation and management of the regional landfill for the<br />

municipalities of Nikšić, Šavnik and Pluţine, the limited liability company Budoš<br />

was established on 5 March 2009. Together with the Decision to establish<br />

joint company to service the landfill, the Statute of the Company was adopted,<br />

which prescribed the business of the Company in accordance with the Law on<br />

Business Organization 46 . Currently, the Company has one employee – the Executive<br />

Director – and is waiting for the construction of the landfill in order to<br />

expand and strengthen its capacities.<br />

Responsibilities<br />

The Company business activities are envisioned as:<br />

• removal of debris and waste, including the management and operation of<br />

sanitary landfill<br />

• recycling of metal waste and residue<br />

• recycling of non-metal waste and residue(including collecting, sorting,<br />

conditioning and sale)<br />

• technical testing and analysis of potential pollution from waste and<br />

measuring quality of air, water, etc.<br />

Capital<br />

The founding capital of the Company is 100,000 EUR, set as follows:<br />

• Municipality Nikšić: 97,000 EUR (97%)<br />

• Municipality Pluţine: 2,000 EUR (2%)<br />

• Municipality Šavnik: 1,000 EUR (1%)<br />

The management bodies of the Company are: the Board of Directors and the<br />

Executive Director.<br />

6.5 Sources of financing<br />

In terms of financing sources for the construction and operation of a regional<br />

landfill in Nikšić, the Government of Montenegro has made explicit in its policies<br />

and statements that the collection, treatment, and disposal of solid waste<br />

should be a self-financing service. This means that the tariffs for solid waste –<br />

including all the costs of collection and final destination of the solid waste<br />

(whether composting, landfilling, etc.) – should cover the costs of providing the<br />

service. In addition, solid waste tariffs are supposed to cover the costs of investments,<br />

for example, by including depreciation of facilities and debt service<br />

in the calculation of tariffs. The Government of Montenegro, however, will<br />

support the development of solid waste management projects by financing studies<br />

and capacity development, as well as by incurring loans to finance invest-<br />

46 Official Gazette No. 60/02 and 17/07<br />

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58<br />

ments. The costs of debt service, however, are to be included in the calculation<br />

of the cost recovery tariffs.<br />

Landfill Directive Under Article 10 (cost of the landfill of waste) of the Landfill Directive, 47<br />

“Member States shall take measures to ensure that all of the costs involved in<br />

the setting up and operation of a landfill site, including as far as possible the<br />

cost of the financial security or its equivalent referred to in Article 8(a)(iv), and<br />

the estimated costs of the closure and after-care of the site for a period of at<br />

least 30 years shall be covered by the price to be charged by the operator for<br />

the disposal of any type of waste in that site.”<br />

Thus, closure and after-care costs are also part of proper cost-recovery tariffs.<br />

This portion of the tariff must be set aside to provide the financial security required<br />

under Article 8 of the Landfill Directive 48 on the conditions of the permit,<br />

according to which the competent authority (in Montenegro, this is the<br />

Ministry of Sustainable Development and Tourism) must not issue a landfill<br />

permit unless it has been demonstrated, among others, that:<br />

“adequate provisions, by way of a financial security or any other equivalent,<br />

on the basis of modalities to be decided by Member States, has been or will be<br />

made by the applicant prior to the commencement of disposal operations to<br />

ensure that the obligations (including after-care provisions) arising under the<br />

permit issued under the provisions of this Directive are discharged and that the<br />

closure procedures required by Article 13 are followed. This security or its<br />

equivalent shall be kept as long as required by maintenance and after-care operation<br />

of the site in accordance with Article 13(d). Member States may declare,<br />

at their own option, that this point does not apply to landfills for inert<br />

waste” Landfill Directive (1999/31/EC), Article 8(a)(iv)<br />

Therefore, financial security must be ensured and the cost of this included in<br />

the cost recovery tariffs. The financial security can be any kind of instrument,<br />

such as: renewable bonds, escrow accounts, cash deposits on a special fund<br />

designated for this purpose, etc.<br />

In the case of Montenegro, article 66a of the Law on Waste governs the issue of<br />

funds for landfill closure, as follows:<br />

A waste producer shall pay all costs incurred by the disposal of waste at the landfill.<br />

The charge rate referred to in paragraph 1 of this Article shall be defined by the<br />

Government.<br />

Funds for the costs related to maintenance and control after the landfill closure<br />

shall be defined in the permit for waste disposal issued for the period which cannot<br />

be shorter than 30 years.<br />

Fund sources and amount for the costs referred to in paragraph 3 of this Article<br />

shall be provided by the local self-government units that use the landfill.<br />

47 Council Directive 1999/31/EC<br />

48 Council Directive 1999/31/EC<br />

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This is not fully compliant with the Landfill Directive, according to which the<br />

landfill operator should secure financing for landfill after-care.<br />

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Annex 1<br />

Main Legal Acts of PROCON<br />

The main legal acts of the Company PROCON are:<br />

• DECISION ON ES<strong>TA</strong>BLISHMENT OF THE LIMITED COMPANY<br />

"PROJECT - CONSULTING" – PODGORICA("Official Gazette of Montenegro",<br />

No. 07/08 of 01.02.2008)<br />

• DECISION on amendments to the Decision on establishment of the Limited<br />

Liability Company “Project – Consulting” – Podgorica (Based on article<br />

71 item 1 of the Company Law (“Official Gazette of Montenegro”, No.<br />

06/02 and “Official Gazette of Montenegro”, No. 17/07, 80/08), from December<br />

2009 – the act that recognises the Company's founding capital:<br />

“The founding capital of the Company represents the cash contribution in<br />

the Company amounting EUR 80,000 (written form: eighty-thousand Euros),<br />

which has been deposited into the bank account of the Company.“<br />

• ARTICLES OF ASSOCIATION OF THE LIMITED LIABILITY COMPANY<br />

“PROJECT-CONSULTING” – PODGORICA - Pursuant to Article 11(2)<br />

of the Company Foundation Resolution for the limited liability company<br />

DOO “Project - Consulting” Podgorica (“Official Gazette of the Republic<br />

of Montenegro”, No. 07/08 of February 1, 2008), the Board of Directors of<br />

the Limited Liability Company “Project-Consulting”, with the consent of<br />

the Government of Montenegro, from August, 2008, adopted documents<br />

stating that Company is “ is founded as a single-member limited liability<br />

company for the purpose of conducting activities of significance for Montenegro<br />

and local self-government“ (Article 1).<br />

• RULE BOOK ON ORGANISATION AND SYSTEMATISATION OF<br />

WORKPLACES OF THE LIMITED LIABILITY COMPANY "PROJECT<br />

- CONSULTING", from July 2008. This Act has been approved by the<br />

Government.'<br />

• DECISION on adoption of the Rules of Procedure for the Board of Directors<br />

of the Limited Liability Company “Project-Consulting” Podgorica,<br />

adopted by the Company Board of Directors in December, 2008.<br />

.


Annex 2<br />

Legal Acts Reviewed for Legislative<br />

Framework<br />

• Law on Environment (Official Gazette of the Republic of Montenegro No.<br />

80/05 and 48/08)<br />

• Law on Nature Protection (Official Gazette of GoM, No. 51/08, 21/09)<br />

• Law on IPPC (Official Gazette of GoM No. 80/05)<br />

• Law on EIA (Official Gazette of GoM No. 80/05)<br />

• Law on SEA (Official Gazette of GoM No. 80/05)<br />

• Law on Spatial Planning and Construction of buildings (Official Gazette of<br />

Montenegro No. 51/08)<br />

• Law on Self-Government (Official Gazette of GoM No. 42/03, 28/2004,<br />

75/2005, 13/2006, 88/2009, 3/2010)<br />

• Law on Participation of Private Companies in Public Services (Official<br />

Gazette GoM No. 30/02 from 26.06.2002 and No. 08/09 from 04.02.2009)<br />

• Law on Concession (Official Gazette of GoM No. 08/2009)<br />

• Law on Foreign Investment (Official Gazette of GoM, No. 52/00)<br />

• Law on Waste Management (Official Gazette of the Republic of Montenegro<br />

No. 80/05 and Official Gazette of Montenegro, No. 73/08 and No.<br />

40/2011-1)<br />

• Regulation on the Waste Classification, Processing procedures, Treatment<br />

and Removal (Official Gazette, GoM, No. 68/09 from 13.10.2009, 86/09<br />

from 25.12.2009)<br />

• Regulation on notification of placing packaging and packed products on<br />

the market, establishing take-over, collection and processing system waste<br />

paper and packaging, the operation of that system (Official Gazette GoM,<br />

09/10)<br />

• Decree on the method and process of registering placement on the market<br />

of the electrical and electronic equipment; establishment of the system for<br />

take-over, collection and treatment of waste electrical and electronic<br />

equipment and system operations (Official Gazette GoM, No. 09/10)<br />

• Rulebook on detailed characteristics on landfill site, construction conditions,<br />

sanitary-technical conditions, operating mode and closure of landfills;<br />

education degree and qualifications for landfill operator; and types of<br />

waste acceptance criteria (Official Gazette GoM, No 84/09 and 46/11 from<br />

16.09.2011)<br />

.


• Regulation on the Waste Recovery and Disposal Facilities (Official Gazette,<br />

GoM, No. 75/10)<br />

• Regulation on WTN waste records consolidated reports (Official Gazette<br />

GoM, No. 46/10)<br />

• Regulation on Handling the Construction Waste (Official Gazette GoM,<br />

No. 60/10)<br />

• Law on Communal Services (Official Gazette of GoM, br. 48/08) (draft<br />

amendments to the law are prepared and are in the Parliament for adoption)<br />

• Law on Business Organization and amendments of the Law (Official Gazette<br />

No. 06/02 from 08.02.2002, 17/07 from 31.12.2007, 80/08 from<br />

26.12.2008, 40/10 from 22 July 2010, 36/11 from 27 July 2011)<br />

.


Annex 3<br />

Secondary Legislation<br />

Based on the Law on Waste Management of the Government of Montenegro<br />

(Official Gazette of RM No. 80/05 and Official Gazette of Montenegro, No.<br />

73/08, 64/11), the following by-laws relevant for the current review (Activity<br />

2) have been adopted in the period 2008-2011:<br />

1 Regulation on the Waste Classification, Processing procedures,<br />

Treatment and Removal (Official Gazette, GoM, No. 68/09 from<br />

13.10.2009, 86/09 from 25.12.2009)<br />

This Regulation provides a waste categorization catalogue, as Annex 1 to<br />

the Regulation in which different types of waste are categorized and classified<br />

into 20 groups, depending on the type of origin. According to the<br />

process through which the waste originated, each group has one or more<br />

subgroups where the waste is classified. The Regulation, furthermore,<br />

clearly indicates what is defined as hazardous waste (Art 3. of the Regulation<br />

and Regulation Annexes).<br />

2 Regulation on notification of placing packaging and packed products<br />

on the market, establishing take-over, collection and processing system<br />

waste paper and packaging, the operation of that system(Official Gazette<br />

GoM, 09/10)<br />

This regulation applies to packaging which is placed on the market and<br />

packaging waste generated in industry, handicrafts, trade, service industries,<br />

households and other sectors, according to which the end user is required<br />

to deliver municipal waste packaging to a utility company as a separate<br />

fraction of municipal waste, while commercial waste packaging needs<br />

to be delivered to a processor of packaging waste. Separately collected<br />

packaging waste generated in the trade, tourism or other services sectors<br />

may be submitted to utility companies, provided that the legal entities and<br />

entrepreneurs who carry out these activities provide containers for separate<br />

collection of packaging.<br />

3 Decree on the method and process of registering placement on the<br />

market of the electrical and electronic equipment; establishment of the<br />

system for take-over, collection and treatment of waste electrical and<br />

electronic equipment and system operations (Official Gazette GoM,<br />

No. 09/10)<br />

This Decree applies to equipment that is not part of machinery and vehicles,<br />

and is not in corporate into the facilities, namely buildings, as their integral<br />

part. Waste equipment can be collected by a distributor, utility company<br />

and someone who will treat/process waste equipment. Waste equipment<br />

cannot be delivered to the utility companies as mixed municipal<br />

waste.<br />

4 Rulebook on detailed characteristics on landfill site, construction conditions,<br />

sanitary-technical conditions, operating mode and closure of<br />

.


landfills; education degree and qualifications for landfill operator; and<br />

types of waste acceptance criteria (Official Gazette GoM, No 84/09 and<br />

46/11 from 16.09.2011)<br />

This Rulebook defines in detail the characteristics of site: geological, hydrological,<br />

morphological, meteorological, seismological etc., construction<br />

conditions, sanitary-technical conditions, operating mode and closure of<br />

landfills, education degree and qualifications for landfill operator, as well<br />

as types of waste and waste acceptance criteria. Some of the Rulebook<br />

provisions defines:<br />

- Waste disposal sites shall be determined based on location and distance<br />

of the site from the structures, visibility of site and environmental<br />

integration, transport lines, transport distances and level of<br />

site-related infrastructure; the possibility of provision of material for<br />

construction of an impermeable layer, drainage and covering; and previous<br />

use of site area.<br />

- Landfill shall be constructed with a minimum distance of 300 m from<br />

inhabited areas and recreation areas, public parks, rehabilitation centres<br />

and resorts and agricultural areas intended for growing fruits and<br />

vegetables; With a minimum distance of 500 m from permanent rivers<br />

and lakes; Is above aquifers or in which water flows from cracks in<br />

rock mass do not fill the landfill area; Is not within Category I, Category<br />

II and Category III of the sanitary protection zone.<br />

- Landfill can be constructed at a site that is provided with a leachate<br />

and gas collection system, and technical solutions for treatment of<br />

leachate and gas to prevent pollution.<br />

- A landfill comprises: landfill body, landfill gas treatment system,<br />

leachate collection basin, leachate treatment and drainage system, external<br />

drainage system for collection of storm water and water resulting<br />

from waste truck-cleaning, waste weighing equipment, waste control<br />

and analysis area and temporary waste storage area.<br />

- Bottom and sides of landfill body shall be lined with a mineral layer<br />

(clay) combined with synthetic materials.<br />

- Surface sealing of landfill body involves placing layers in the following<br />

sequence: highly impermeable mineral layer (clay), impermeable<br />

synthetic material with a protective geo-textile layer drainage layer, 1<br />

m thick top soil cover (re-cultivation layer), and 0.3 m thick humus<br />

layer.<br />

- Other specific Rulebook provision and conditions for Leachate treatment,<br />

landfill gas, protective measures, etc.<br />

5 Regulation on the Waste Recovery and Disposal Facilities (Official<br />

Gazette, GoM, No. 75/10)<br />

.


In regard to equipment and staffing, the waste recovery or disposal facility<br />

needs to fulfil some of following conditions set out by this Regulation:<br />

- if the waste is not collected in the enclosed containers, canisters or<br />

tanks, the facility shall be equipped with a wheel-washing system for<br />

vehicles, and the wastewaters from wheel washing shall undergo<br />

treatment in accordance with relevant national regulations.<br />

- area for acceptance of the waste in the facility shall be equipped with<br />

an electronic scale to weigh the vehicle and computer equipment for<br />

issuing electronic receipt for the quantity (not mandatory for sites with<br />

capacity below 10 tons a day or below 2000 tons a year).<br />

- log file maintained;<br />

- The facility shall comprise: the area for receiving and collection of the<br />

accepted waste, the area for storage of the accepted waste, the area for<br />

pre-treatment of the waste pending recovery or disposal, the area for<br />

recovery or disposal, the area for storage and dispatching of residual<br />

waste or disposable waste, the area for storage and dispatching of the<br />

recovered waste, special premises for the facility operator.<br />

- Description of operating process of the facility contains: description of<br />

location and identification of risk source; Description of level of<br />

equipment in the facility and location with a view to pollution prevention<br />

and control; Description of technological process and level of<br />

equipment for carrying out the operating process; Description of the<br />

pollution prevention procedure and reporting and location-related<br />

documents.<br />

6 Regulation on WTN waste records consolidated reports (Official Gazette<br />

GoM, No. 46/10)<br />

This Regulation prescribes the format, content and manner of completion<br />

of the waste transfer note; format, content and manner of maintaining the<br />

record of quantity and types of waste - to be maintained by a waste producer,<br />

legal or natural person which disposes of waste due to the performing<br />

of operations of the waste recovery, collection and transport and by the<br />

local government authority responsible for municipal waste management;<br />

format and content of the annual report to be submitted to the local government<br />

authority by a waste producer, legal or natural person which disposes<br />

of waste due to the performing of operations of waste recovery, collection<br />

and transport; content and manner of maintaining the register of<br />

data on the waste production, waste management and issued permits; and<br />

format and content of the consolidated report on the waste production,<br />

waste management and issued permits to be submitted to the Environmental<br />

Protection Agency.<br />

In addition, the Regulation provides clear guidance on the format of the<br />

Waste Transfer Note (WTN) and the manner of its completion. The WTN<br />

.


shall contain data on consignor place of production and origin of waste<br />

when the consignor is the producer of waste; temporary waste storage depot<br />

if the consignor as a collector disposes of the temporary stored waste;<br />

carrier and means of transport; consignee; temporary waste storage depot if<br />

the consignee as a collector carries out temporary storage of waste; place<br />

of treatment and waste recovery procedure, when the consignee carries out<br />

waste recovery; type and quantity of waste in the consignment; physical<br />

properties and type of the packaging; place of delivery, i.e. acceptance of<br />

the consignment.<br />

The records of quantity and types of waste shall be maintained on the gridlines<br />

set by the Regulation, as well as the local government data register of<br />

waste production, waste management, etc.<br />

7 Regulation on Handling the Construction Waste (Official Gazette<br />

GoM, No. 60/10)<br />

This Rulebook applies to the construction waste classified under the waste<br />

identification code 17 in the waste catalogue (waste concrete, bricks, ceramics<br />

and gypsum-based construction material or mixture of construction<br />

material with the soil excavation).<br />

The Rulebook prescribes methods for storing construction waste (construction<br />

waste on the construction site shall be stored separately by types of<br />

construction waste, in accordance with the waste catalogue and separately<br />

from other waste, in an environmentally safe manner); disposal of the construction<br />

waste (disposal can be executed in containers located on the site);<br />

the need for construction waste management plan and its content (for a<br />

building, the volume of which together with the soil excavation exceeds<br />

2000 m 3 ); maintaining records by the investor of the type and quantity of<br />

the construction waste in conformity with the law; re-use of construction<br />

waste (can be re-used for construction works on the construction site on<br />

which the waste was produced if the volume of waste does not exceed 50<br />

m 3 ); handling the asbestos-cement waste (shall be packed in sealed bags or<br />

foil in order to prevent discharge of the asbestos fibres in the environment<br />

during loading, transport and unloading on the landfill. Asbestos-cement<br />

waste can be packed in textile bags, artificial substances or polyethylene<br />

foil being at least 0.4 mm thick, or layers of stretchable foil of total thickness<br />

of at least 0.6 mm).<br />

8 Other by-laws in the field of waste management:<br />

• Regulations on quality and sanitary-technical conditions for the release of<br />

wastewater to the public sewerage system, method and procedure of examination<br />

of the wastewater quality, the minimum number of tests and de-<br />

.


termined the contents of the report on the quality of wastewater ('Official<br />

Gazette of Montenegro, No. 45/08, 09/10) 49 ,<br />

• Rules on detailed conditions to be met by municipal sludge, the amount,<br />

scope, frequency and methods of analysis of municipal sewage sludge to<br />

the permitted uses and conditions to be met by land planned for its implementation<br />

('Official Gazette', No. 89 / 09) 50<br />

• Decree on the criteria, amount and manner of special charges for waste<br />

management (Official Gazette, No. 11/09, 46/09 and 15/11) 51<br />

• Regulation on the procedure for placing packaging and packaged products<br />

on the market, the establishment of systems acquisitions, collection and<br />

processing of waste packaging and operation of the system (Official Gazette,<br />

No. 09/10 19/11) 52<br />

• Regulation on the procedure for registration of putting tires on the market,<br />

the establishment of systems acquisitions, collection and processing of<br />

waste tires and working of the system (Official Gazette, No. 09/10) 53<br />

• Regulation on the procedure for registration of vehicles put on the market,<br />

establishment of system acquisitions, and waste collection vehicles and<br />

operation of the system ("Official Gazette" No. 09/10) 54<br />

• Regulation on the procedure for registration of placing batteries and accumulators<br />

on the market, the establishment of systems acquisitions, collection<br />

and processing of used batteries and accumulators and the system (Official<br />

Gazette, No. 15/10) 55<br />

• Rules for the treatment of waste oil (Official Gazette, No. 21/10) 10) 56<br />

• Rules on the form, content and manner of completing the form on the<br />

transport of waste and registering waste, the annual report on waste, main-<br />

49 Pravilnik o kvalitetu i sanitarno-tehniĉkim uslovima za ispuštanje otpadnih voda u recipijent i javnu<br />

kanalizaciju, naĉinu i postupku ispitivanja kvaliteta otpadnih voda, minimalnom broju ispitivanja i<br />

sadrţaju izvještaja o utvrĊenom kvalitetu otpadnih voda (‟‟Sluţbeni list CG“, broj 45/08, 09/10)<br />

50 Pravilnik o bliţim uslovima koje treba da ispunjava komunalni kanalizacioni mulj, koliĉine, obim,<br />

uĉestalost i metode analize komunalnog kanalizacionog mulja za dozvoljene namjene i uslovima koje<br />

treba da ispunjava zemljište planirano za njegovu primjenu (‟‟Sluţbeni list CG‟‟, broj 89/09)<br />

51 Uredba o kriterijumima, visini i naĉinu plaćanja posebne naknade za upravljanje otpadom<br />

(‟‟Sluţbeni list CG‟‟, broj 11/09, 46/09 i 15/11)<br />

52 Uredba o naĉinu i postupku prijave stavljanja ambalaţe i upakovanih proizvoda na trţište,<br />

osnivanja sistema preuzimanja, sakupljanja i obrade otpadne ambalaţe i rada tog sistema („‟Sluţbeni<br />

list‟‟, broj 09/10, 19/11)<br />

53 Uredba o naĉinu i postupku prijave stavljanja guma na trţište, osnivanja sistema preuzimanja, sakupljanja<br />

i obrade otpadnih guma i rada tog sistema (‟‟Sluţbeni list CG‟‟, broj 09/10)<br />

54 Uredba o naĉinu i postupku prijave stavljanja vozila na trţište, osnivanja sistema preuzimanja, sakupljanja<br />

i obrade otpadnih vozila i rada tog sistema (“Sluţbeni list CG”, broj 09/10)<br />

55 Uredba o naĉinu i postupku prijave stavljanja baterija i akumulatora na trţište, osnivanja sistema<br />

preuzimanja, sakupljanja i obrade istrošenih baterija i akumulatora i rada tog sistema (“Sluţbeni list<br />

CG“, broj 15/10)<br />

56 Pravilnik o postupanju sa otpadnim uljima (“Sluţbeni list CG”, broj 21/<br />

.


tenance of the register data and the content of the summary report form<br />

(Official Gazette, No. 46/10) 57<br />

• Regulation on detailed contents of the documentation for the issuance of<br />

permits for import, export and transit of waste and waste classification list<br />

(Official Gazette, No. 75/10) 58<br />

• Ordinance on the content, form and manner of keeping the register of licenses<br />

issued for the transboundary movement of waste (Official Gazette,<br />

No. 71/10) 59<br />

• Regulation on detailed contents of a detailed description of the work process<br />

and conditions of the equipment and personnel with which the treatment<br />

plant and disposal facilities need to comply (Official Gazette, No.<br />

75/10) 60<br />

• Ordinance on the incineration of waste (Official Gazette, No. 14/11) 61<br />

• Regulations on the procedure of processing equipment and waste containing<br />

PCBs (Official Gazette, No. 34/11) 62 .<br />

57 Pravilnik o obliku, sadrţaju i naĉinu popunjavanja formulara o transportu otpada i evidencije o<br />

otpadu, godišnjem izvještaju o otpadu, sadrţini i naĉinu voĊenja registra podataka i sadrţaju i formi<br />

zbirnog izvještaja ("Sluţbeni list CG ", broj 46/10)<br />

58 Pravilnik o bliţem sadrţaju dokumentacije za izdavanje dozvole za uvoz, izvoz i tranzit otpada, kao<br />

i listi klasifikaciji otpada ("Sluţbeni list CG", broj 75/10)<br />

59 Pravilnik o sadrţaju, obliku i naĉinu voĊenja registra izdatih dozvola za prekograniĉno kretanje<br />

otpada ("Sluţbeni list CG", broj 71/10)<br />

60 Pravilnik o bliţem sadrţaju detaljnog opisa radnog procesa i uslovima koje u pogledu opreme i<br />

kadra ispunjava postrojenje za preradu i odstranjivanje otpada ("Sluţbeni list CG", broj 75/10)<br />

61 Pravilnik o spaljivanju otpada ("Sluţbeni list CG", broj 14/11)<br />

62 Pravilnik o naĉinu i postupku obrade opreme i otpada koji sadrţi PCB ("Sluţbeni list CG", broj<br />

34/11)<br />

.


Annex 4<br />

SWOT Analysis on the Regions in<br />

Montenegro<br />

The following SWOT analysis was prepared within the Regional Development<br />

Strategy for Montenegro. These include the North Region (including Pluţine<br />

and Šavnik) and the Central Region (Nikšić). The Coastal Region is not shown<br />

below.<br />

Table 17<br />

SWOT Analysis for the North Region (Plužine, Šavnik), strengths and<br />

weaknesses<br />

Human<br />

resources<br />

Environment<br />

Economic<br />

activities<br />

Traffic and<br />

public<br />

infrastructure<br />

Strategic<br />

and<br />

development<br />

plans and<br />

programs,<br />

policy<br />

Strengths<br />

Available human resources;<br />

Relatively good opportunities for<br />

education;<br />

Educated population;<br />

Biological diversity, existing and<br />

potential protected areas<br />

water and forest resources,<br />

agricultural land;<br />

The interest of local<br />

government and population in<br />

solving environmental problems;<br />

Cooperation with the civil sector.<br />

The potential for rural tourism;<br />

Strategic Tourism Development;<br />

Development of entrepreneurship<br />

and business centres; The potential<br />

for forestry development; Industries<br />

based on agriculture;<br />

Developmental communication<br />

network;<br />

There is awareness of the need to<br />

pass Local government development<br />

strategies;<br />

Urban plans of local governments<br />

are in the process of development.<br />

Weaknesses<br />

Unemployment;<br />

Non-harmonized supply and demand<br />

in the labour market;<br />

Depopulation;<br />

High outflow of educated people;<br />

Inadequate waste management and<br />

Wastewater - undeveloped utilities;<br />

The absence of effective mechanisms<br />

for sustainable management of<br />

natural resources<br />

Insufficient capacity (in general, and<br />

for development projects for the EU<br />

funds);<br />

Low energy efficiency;<br />

Under developed economic infrastructure;<br />

Complicated administrative procedures;<br />

Unorganized purchase of agricultural<br />

product;<br />

Underdeveloped Sector of Information<br />

technology;<br />

Travel and rail infrastructure;<br />

Access to basic services in rural areas<br />

The lack of spatial planning documents;<br />

The lack of sectoral strategies;<br />

The absence of plans for development<br />

of utility services<br />

Lack of local environmental plans<br />

The absence of a database of local<br />

government;<br />

Lack of funds.<br />

.


Table 18<br />

SWOT Analysis for the North Region (Plužine, Šavnik), opportunities<br />

and Threats<br />

Human<br />

resources<br />

Environment<br />

Economic<br />

activities<br />

Traffic and<br />

public<br />

infrastructure<br />

Strategic and<br />

development<br />

plans and<br />

programs,<br />

policy<br />

Opportunities<br />

Investing in lifelong education;<br />

Opening of new educational<br />

institutions;<br />

Training on EU programs;<br />

The rich natural heritage;<br />

Development potential of rural areas;<br />

EU funds and other potential sources<br />

funding;<br />

Renewable energy sources(wind, biomass,<br />

water);<br />

Improving forest management,<br />

with a greater degree of involvement of<br />

local<br />

self-government.<br />

New trends in tourism (bicycling,<br />

hunting, rafting...);<br />

Growing International Demand for rural<br />

tourism;<br />

Funds and activities of the Government<br />

of Montenegro and the EU for economic<br />

development and improvement<br />

business environment;<br />

New trends in development of organic<br />

food;<br />

The development of information technology;<br />

Transfer of knowledge and technology;<br />

Development of SMEs.<br />

Construction of the highway Bar-<br />

Boljare;<br />

Private-public partnership;<br />

The possibility of cross-border cooperation<br />

(IPA);<br />

Decentralization of development management;<br />

Threats<br />

The low natural population<br />

growth;<br />

Further population;<br />

Weak capacity to prepare the<br />

EU projects.<br />

Outdated technologies (GP);<br />

High CO2 emissions;<br />

Illegal construction, which<br />

threatens natural and other<br />

values;<br />

Unplanned deforestation<br />

Lack of funds<br />

Natural disasters;<br />

The development of mass tourism<br />

projects in neighbouring<br />

countries;<br />

Global and EU competition;<br />

Inability to attract funds for<br />

development of renewable energy<br />

sources;<br />

No investors for investment in<br />

infrastructure;<br />

No harmonized local governments<br />

and state development<br />

policies;<br />

Adverse external sources of<br />

funding;<br />

The slow process of decentralization;<br />

Lack of implementation of<br />

adopted strategic plans;<br />

.


Table 19<br />

SWOT Analysis for the Central Region (Nikšić), strengths and weaknesses<br />

Strengths<br />

Weaknesses<br />

Human resources<br />

Environment<br />

Economic<br />

activities<br />

Traffic and<br />

public infrastructure<br />

Strategic and<br />

development<br />

plans and<br />

programs,<br />

policy<br />

Educational institutions;<br />

Educational Structure;<br />

Positive demographic trends of<br />

employment opportunities.<br />

Rich in biodiversity;<br />

Partially developed utility<br />

infrastructure;<br />

Progress in the preparation of<br />

project documentation;<br />

Relatively well-developed capacities.<br />

Business centres;<br />

Development of economic infrastructure<br />

entrepreneurship;<br />

A large number of SMEs;<br />

Excellent conditions for the development<br />

of small and<br />

medium business;<br />

Defining the agro industrial zone<br />

Tourism Resources;<br />

Investments inroad infrastructure;<br />

Airport;<br />

Good transport links;<br />

Developed telecommunication<br />

network.<br />

Multi-year investment plan;<br />

Detailed master plans.<br />

Lack of social inclusion;<br />

Under developed system of lifelong<br />

education;<br />

Low energy efficiency;<br />

The low-level of awareness about the<br />

environment, particularly on climate<br />

change;<br />

Improper dispose a of special<br />

waste streams;<br />

Inadequate control of pressures and<br />

inefficient enforcement of laws.<br />

Lack of evaluation culture-natural gases;<br />

The low-level of investment in research<br />

and development;<br />

Protecting intellectual property;<br />

A significant level of unused resources<br />

and agricultural land;<br />

Reduced liquidity of companies;<br />

Quality of transport services;<br />

Out dated rail infrastructure.<br />

Requires new Strategic development<br />

plan of Local Government;<br />

The required geographic information system;<br />

There is no reliable statistical base data;<br />

Lack of harmonization between the<br />

dynamics of development<br />

Capital town with other parts of State;<br />

.


Table 20<br />

Human resources<br />

Environment<br />

Economic<br />

activities<br />

Traffic and<br />

public<br />

infrastructure<br />

Strategic and<br />

development<br />

plans and<br />

programs,<br />

policy<br />

SWOT Analysis for Central Region (Nikšić), opportunities and threats<br />

Opportunities<br />

EU training program;<br />

Investing in life long education;<br />

Education of persons with special<br />

needs;<br />

The increase in labour supply of<br />

different professional profiles.<br />

Improving energy efficiency<br />

the industry standard for energy<br />

efficient Building;<br />

Renewable energy sources(sun,<br />

wind);<br />

The application of new knowledge<br />

and technology;<br />

Improving the system of selective<br />

waste collection.<br />

Investment in research and development;<br />

The application of new knowledge<br />

and technology;<br />

E-commerce;<br />

Further improvement of economic<br />

Skadar Lake as infrastructure<br />

tourist destinations;<br />

New Trends in Tourism(Rural<br />

tourism, bicycling, villas);<br />

Water potential; The potential for<br />

agricultural development;<br />

IT business incubator.<br />

The geographical location;<br />

The potential for combined traffic<br />

methods;<br />

Construction of the highway Bar-<br />

Boljare;<br />

Adriatic-Ionian corridor;<br />

Digitization means of mass<br />

communication;<br />

The high frequency of traffic<br />

during summer season.<br />

Cross-border cooperation;<br />

EFunds.<br />

Threats<br />

Lack of awareness of the need for<br />

education and training skills;<br />

Outflow of young and highly qualified<br />

labour forces to other countries.<br />

The pressures on agricultural land;<br />

All forms of pollution of the environment,<br />

especially industrial pollution;<br />

Multiple pressures on protected areas.<br />

Lack of funds;<br />

Global and EU competition;<br />

Decrease in investment activity;<br />

Decrease in demand for real estate;<br />

Lack of finding investors for investment<br />

in infrastructure.<br />

Lack of enforcement of adopted strategic<br />

plans.<br />

.

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