Infrastructure Projects Facility Technical Assistance Window (IPF TA ...

Infrastructure Projects Facility – Technical Assistance Window
Sub project: WB4-MNE-ENV-12B: Management Models and Options for Cost Recovery for the Future Construction and
Operation of Regional Landfills in Montenegro
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time of 20 years. The approximate amount, required for the construction of the
Phase I, is EUR 9,200,000.
6.4.2 BUDOŠ, Ltd
For the purpose of the operation and management of the regional landfill for the
municipalities of Nikšić, Šavnik and Pluţine, the limited liability company Budoš
was established on 5 March 2009. Together with the Decision to establish
joint company to service the landfill, the Statute of the Company was adopted,
which prescribed the business of the Company in accordance with the Law on
Business Organization 46 . Currently, the Company has one employee – the Executive
Director – and is waiting for the construction of the landfill in order to
expand and strengthen its capacities.
Responsibilities
The Company business activities are envisioned as:
• removal of debris and waste, including the management and operation of
sanitary landfill
• recycling of metal waste and residue
• recycling of non-metal waste and residue(including collecting, sorting,
conditioning and sale)
• technical testing and analysis of potential pollution from waste and
measuring quality of air, water, etc.
Capital
The founding capital of the Company is 100,000 EUR, set as follows:
• Municipality Nikšić: 97,000 EUR (97%)
• Municipality Pluţine: 2,000 EUR (2%)
• Municipality Šavnik: 1,000 EUR (1%)
The management bodies of the Company are: the Board of Directors and the
Executive Director.
6.5 Sources of financing
In terms of financing sources for the construction and operation of a regional
landfill in Nikšić, the Government of Montenegro has made explicit in its policies
and statements that the collection, treatment, and disposal of solid waste
should be a self-financing service. This means that the tariffs for solid waste –
including all the costs of collection and final destination of the solid waste
(whether composting, landfilling, etc.) – should cover the costs of providing the
service. In addition, solid waste tariffs are supposed to cover the costs of investments,
for example, by including depreciation of facilities and debt service
in the calculation of tariffs. The Government of Montenegro, however, will
support the development of solid waste management projects by financing studies
and capacity development, as well as by incurring loans to finance invest-
46 Official Gazette No. 60/02 and 17/07
.