EQUIPPING HEALTHCARE FACILITIES IN MONTENEGRO

The project supports the construction of a new general hospital in Pljevlja, replacing outdated facilities to improve service accessibility in northern Montenegro; the construction of the new city Kvart health centre in Podgorica, which will address overburdened primary healthcare services due to rapid urban expansion and the construction of a new haematology clinic within the clinical center of Montenegro, which will enhance cancer diagnosis and treatment. Additionally, over 30 public healthcare institutions will benefit from investments in modern medical equipment, such as magnetic resonance imaging, computed tomography scanners, and x-ray machines among others, reducing diagnostic waiting times and enhancing service delivery. The project is part of a broader programme to modernise Montenegro's health sector, involving also the International Atomic Energy Agency lead project for breast cancer imaging and supported by the Bank's catalytic role in enabling this cooperation.

The project strengthens Montenegro's public healthcare system by building three new hospitals and upgrading over 30 facilities, improving health outcomes and service quality while supporting economic growth, EU-aligned reforms, and progress toward EU accession through modern, sustainable infrastructure.

The objective of the proposed Loan is to finance the priority infrastructure projects of Montenegro's health sector at various levels of care, for enhancing healthcare facilities to provide accessible and high-quality services for the inhabitants. The Project comprises the construction of a new General Hospital in Pljevlja, the contruction of the City Kvart Health Centre in Podgorica and the construction of the Hematology Clinic within the Clinical Center of Montenegro. Additionally, investments in modern medical equipment, such as Magnetic Resonance Imaging (MRI), Computed Tomography (CT) scanners, and X-ray machines among others, will benefit over 30 public healthcare institutions, reducing diagnostic waiting times and enhancing service delivery.

The proposed operation addresses key market failures in Montenegro's healthcare sector, primarily the underinvestment in infrastructure due to the public goods nature of healthcare and the significant positive externalities it generates. By financing priority projects such as new hospitals, health centres, and advanced diagnostic equipment, the project ensures the provision of services that the market alone would not deliver. These investments will improve accessibility, reduce diagnostic waiting times, and strengthen the resilience of the healthcare system, creating broad societal benefits that support better living and working conditions.

The operation is fully aligned with the EU Reform and Growth Facility (RGF) for the Western Balkans, which promotes economic integration, regional cooperation and key structural reforms in candidate countries. By strengthening Montenegro's public health system through new hospital infrastructure, modern medical equipment, and enhanced service delivery, the project directly supports the RGF's health sector priorities, namely infrastructure modernisation, improved equity of access, reduced health disparities, and the advancement of technically mature, strategically coherent health investments. It also complements Montenegro's Reform Agenda (2024?2027), particularly in the areas of public service delivery, green transition and infrastructure modernisation.

At the same time, the operation is strongly aligned with EU strategic priorities and frameworks. It contributes to the Neighbourhood, Development and International Cooperation Instrument (NDICI) objectives by fostering partnerships for social and economic prosperity and addressing global challenges such as social protection and inclusive growth. The project fully supports the Instrument for Pre-accession Assistance (IPA) III Programming Framework (2021?2027), particularly its thematic priority on health under Window 4: Competitiveness and Inclusive Growth. Furthermore, it reinforces the goals of the EU4Health Programme, the European Health Union, and the EU Global Health Strategy, aiming to strengthen health systems, improve access to care, and enhance preparedness for cross-border health threats.

By adhering to EIB's Strategic Procurement approach and financing medical equipment, a sector where EU companies are global leaders, the project ensures strong involvement of EU corporates, advancing EU strategic interests. The EIB financial contribution will entail a long tenor, commensurate with the economic life of the assets financed, and long grace and availability periods, in line with the project implementation period. The EIB loan will complement a loan from the Council of Europe Development Bank (CEB).

The project is considered to be Paris aligned because i) it meets the low carbon criteria as set out in the Climate Bank Roadmap (Annex 2, Table I Human Capital) and ii) is assessed as not materially at risk from physical climate hazards. In this context, the physical climate risk for this project is considered Low.

The promoter shall ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement legislation.

Under EFSD+ Guarantee