The government of Montenegro has taken several steps to demonstrate their support for infrastructure development through PPPs. A legal and regulatory framework for PPPs was created and it is increasingly aligned with EU regulation. The Concessions Act (2009) is considered comprehensive as it defines concessions broadly, thus making the utilization of several PPP models possible. The Law on Participation of Private Sector in Performance of Public Services (as amended in 2009) remains applicable for public services operated through leasing and management agreements. In the absence of a PPP unit, the Commission on Concessions has a general oversight function.
Montenegro has implemented infrastructure projects using divestitures and management contracts since 2001. While the largest share of investment was recorded in telecom, there have been projects with private participation in the water and power sectors. Although the government has been encouraging the use of PPPs, the underdeveloped institutional framework remains an impediment to the successful utilization and implementation of PPPs.
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