The coastal municipality of Herceg Novi is entering a major infrastructure and development cycle valued at approximately €120 million, with a series of public investment projects planned or already underway as part of Montenegro’s national capital budget. The programme combines municipal and state-level funding and is intended to modernize transport infrastructure, public facilities and utility systems while supporting tourism development along the Bay of Kotor.
According to government officials, the portfolio includes both ongoing projects and new initiatives scheduled for implementation during the 2026 budget cycle. Among the key priorities is the completion of the new bus station in Herceg Novi, a long-anticipated infrastructure project expected to become operational before the start of the upcoming tourist season.
The new terminal represents one of the most important transport investments in the municipality in decades. Construction of the complex includes the main station building, passenger platforms, parking areas and supporting infrastructure, as well as a new access road connecting the facility to the city’s transport network. The total investment associated with the bus station project is estimated at roughly €10 million, including the station structure, equipment and associated road infrastructure.
Beyond the transport project, the broader investment programme encompasses a range of infrastructure developments designed to strengthen the municipality’s economic and tourism capacity. Projects discussed between national authorities and the municipal administration include road infrastructure improvements on the Luštica peninsula, upgrades to the regional water supply network, and the expansion of sewage and coastal infrastructure.
One of the largest initiatives planned for the coming years is the construction of an Olympic-size swimming pool in Igalo, which will be financed through a co-investment structure involving both the Government of Montenegro and the Municipality of Herceg Novi. The sports complex is expected to become one of the most significant public infrastructure projects in the municipality over the next several years.
The investment programme also includes projects linked to education and heritage revitalisation. Among them is the transformation of the children’s department of the Igalo Institute into a school facility, as well as the reconstruction of the historic Španjola fortress, which has been included in the national capital investment plan.
Municipal officials emphasize that the goal of the investment cycle is not only infrastructure modernization but also long-term economic development. By improving transport connectivity, public facilities and utility systems, the projects are expected to strengthen the tourism economy of Herceg Novi while supporting the wider development of the Bay of Kotor coastal region.
The new bus station alone is expected to significantly improve the city’s transport system. By relocating the terminal and expanding capacity, the project should reduce congestion on the main coastal road while creating a more efficient hub for regional and international bus traffic during the summer tourist season.
In parallel with these initiatives, additional discussions are underway regarding further infrastructure investments, including coastal promenade improvements and wastewater management systems. Such projects are considered essential for maintaining environmental standards and ensuring the sustainability of tourism development along Montenegro’s Adriatic coastline.
The €120 million investment cycle therefore represents one of the most significant development programmes currently underway in Herceg Novi. Through a combination of municipal planning and national capital funding, the projects aim to strengthen the city’s infrastructure base, expand tourism capacity and modernize public facilities in a municipality that plays an increasingly important role in Montenegro’s coastal economy.
If implemented according to schedule, the programme will reshape key parts of the city’s infrastructure over the coming years, positioning Herceg Novi to capture a larger share of tourism flows along the Adriatic while improving services and quality of life for residents.
