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Towards Carbon Neutral Tourism in Montenegro
Commissioning Unit: Montenegro
Evaluation Plan: 2017-2022
Evaluation Type: Project
Completion Date: 07/2017
Unit Responsible for providing Management Response: Montenegro
Documents Related to overall Management Response:
1. Recommendation:

To improve implementation (and meet GHG emission reduction targets), the Project as a first priority should use its remaining resources to focus on monitoring and ensuring proper implementation of the 27 pilot low carbon investments from the 1st and 2nd calls for low carbon proposals and if deemed necessary, publish a 3rd call for proposals (in case of unsuccessful implementation of some of 27 selected projects). If low carbon project proponents are willing to collaborate, Project resources can be used to:

  • provide regular monitoring of these investments as required with the aim that these pilot projects can be approved by third-party verification MRV services for GHG emission reductions;
  • provide technical assistance to project proponents in the event that delays are experienced due to disruptions in equipment supply or poor quality workmanship;
  • involve MRV services prior to and after installation of low carbon equipment or measures to ensure full understanding by the project proponent and TCNT Project staff of how the low carbon investment can generate maximum GHG emission reductions (see recommendation on Para 79);
  • with available time and resources, request MRV services to file a verification report on the low carbon investment;
Management Response: [Added: 2017/10/02] [Last Updated: 2017/10/02]

Technical expert engaged to monitor all projects – low carbon investments contracted throught the Chamber of Economy, regular monitoring visits are being conducted and monitoring reports are being prepared with concrete instructions to project owners to improve the performance, when needed.

Key Actions:

2. Recommendation:

To improve implementation (and increase the visibility of the Project’s efforts to promote low carbon tourism in Montenegro), the Project as a second priority should:


  • increase its efforts to eco-certify hotels in addition to the 20 currently involved with the Project. This should be done as a hedge against the risk of not generating sufficient GHG emission reductions from the low carbon investments from the 1st and 2nd calls for proposals. To increase the likelihood of hotels willing to be eco-certified, the area of hotels to be eco-certified should be expanded to hotels throughout Montenegro, instead of the original target of 6 coastal cities.  Para 78 provides recommendations for the targeted number of hotels to eco-certify;
  • increase its collaboration with the National Tourism Organization (NTO) to disseminate information on websites and other media on eco-certified low carbon tourist accommodations in Montenegro. By doing so, the Project can raise awareness of low carbon tourism facilities and services in Montenegro. If successful, this could only help in increasing trends on the awareness of the availability of low carbon facilities in Montenegro for tourists (see Para 78, third bullet on Outcome 4 for further details).  More specifically, NTO should make an additional effort to help portray green, low carbon facilities and services (such as hotels and tourist attractions) to foreign tourists by designating a separate page of their website on these green topics. This will have a much broader impact on raising awareness of Montenegro’s green tourism;
  • further on collaboration with NTO’s websites as mentioned in Para 62, they could be linked to the websites of CoE and MoSDT regarding the 1st and 2nd calls of the low carbon proposals.  This would also be a means of increasing public awareness of Montenegro’s effort to lower the carbon footprint of its tourism sector;
  • assist NTO in further outreach to numerous global websites dedicated to sourcing eco-certified hotels globally. One example of a site that can assist tourists in sourcing eco-certified hotels is the Green Traveler Guide ( where Montenegro could be included on a list of European countries that have eco-certified accommodations.
Management Response: [Added: 2017/10/02] [Last Updated: 2017/10/02]

Project team has approached 10 new hotels to participate in the eco-certification scheme, all the hotels that were successful in the 2nd Call for Proposals were interviewed and trained for eco-certification, three national coverage TV shows have been dedicated to eco certification of hotel industry, with participation of the project team members. All the recipients of funds though the Call for Proposals are to be presented in the News Letter of the Chamber of Economy (monthly editions).

All the information on the Calls for Proposals published on the websites of Chamber of Economy, MSDT and UNDP.

Key Actions:

3. Recommendation:

To correct Project design, a number of suggestions are provided here to adjust TCNT Project targets including:


  • In Outcome 1, adjust the target of 33% of all officially registered tourist accommodation facilities in coastal cities to a more attainable percentage or number of facilities. Currently, with an estimate of 600 tourist accommodation facilities on the coastal zones alone in Montenegro, eco-certifying more than 200 tourist accommodations within a period of 2 years does not appear possible.  The Project should expand its program for eco-certifications beyond coastal cities to inland cities such as Cetinje and Podgorica as well as hotel resorts in the northern part of the country. TCNT Project personnel should determine a target for the number of tourist accommodation facilities to be eco-certified within the next 2 years based on remaining Project resources, and the GHG emission reductions that can be generated from these eco-certified hotels;
  • In Outcome 2, readjust the target for “certification of the country’s main airport and marine entry points as low carbon facilities” to a target that is more attainable based on remaining Project resources. To meet the original target, the Project would have had to conducted discussions early in the Project with senior personnel within the main airport and marine entry points. In addition, the time required to scope measures required to convert these facilities into low carbon facilities would have been longer than the Project duration (extensive time required to do the energy audit, decision by the facilities to invest in low carbon measures, implementing low carbon measures followed by certification of the facilities as low carbon). The Project, however, has conducted only minor discussions on these issues, and with the remaining time and resources of the TCNT Project, it is highly unlikely that attainment of this target is possible. As such, it is entirely possible that this target may have to be dropped entirely;
  • In Outcome 2, drop the target of a “new Kotor-Cetinje cable car developed and constructed as a carbon free transport corridor”, in light of recent news that the 2016 tender was cancelled for the €47 million project with a new tender commission to be established at a future but yet undetermined date;
  • In Outcome 4, specifically Outputs 4.1 and 4.6, TCNT Project staff need to collaborate with the National Tourism Organization (as a high priority) to more effectively promote low carbon tourism in Montenegro for incoming tourists as well as other key stakeholders. The current NTO website ( contains no visible references or linkages to low carbon and positive environmental aspects that are available in Montenegro’s tourism industry. For example, if a tourist wanted to access to green or low carbon accommodation, the site does not appear to provide any information on these aspects. By providing such information on eco-certified accommodations, many of these entrepreneurs may realize economic benefits in return for the costs of eco-certification of their accommodations. In addition, and as mentioned in Para 77, the Project should seek to link with a global eco-certification website to list recently eco-certified hotels in Montenegro as a means to raise the profile of the country’s efforts on low carbon tourism.
Management Response: [Added: 2017/10/02] [Last Updated: 2017/10/02]

The project team has already expanded the activity providing support to hotel accommodations throughout the entire country (contrary to only the coastal areas as stipulated in the ProDOc). The project team will consider the optimal number of certified hotels in order to redefine the target and discuss it in the Working Group and Project Steering Committee.

The project team fully agrees with the conclusion and recommendation of the MTR findings and will present it at the Project Steering Committee.


Key Actions:

4. Recommendation:

To improve the monitoring and evaluation of the Project, TCNT Project staff should strengthen its efforts as a high priority to monitor implementation of the 27 pilot low carbon investments and eco-certified hotels to improve tracking the progress in reaching or exceeding the direct GHG emission reductions target of 77 ktonnes CO2 (20-year lifetime).  The MTR team had access to reports of GHG emission reduction calculations of the various low carbon proposals, and eco-certified hotels; however, the information was not formally summarized into a report solely on progress for meeting GHG emission reductions targets.  As such, the following recommendations are being made to improve M&E of the GHG emission reductions:


  • Since the Project has an indicator of “status of implementation and resulting GHG emission reductions from the pilot projects”, summary documentation of each pilot project and eco-certified hotel and their GHG emission reduction calculations should be prepared and made readily available to Project staff, UNDP advisors and the Terminal Evaluators.  While it appears GHG calculations are being done initially in Croatia using assistance external to UNDP Montenegro in support of the 2nd call for low carbon proposals, this GHG reporting process needs formalization with reports made available to all Project staff.  These reports will be useful in monitoring progress towards the Project’s GEB target of 77,000 ktonnes of direct CO2 emission reductions from low carbon investments; and
  • Project staff preparing GHG emission reduction reports should be mindful of the requirements for reporting energy savings and GHG emission reductions into the GEF tracking tool. These GHG reports should be set up and tabulated in a manner to allow for easy entry of energy savings and GHG emission reduction figures into the TCNT Project’s GEF tracking tool, which is provided in Appendix E


Management Response: [Added: 2017/10/02] [Last Updated: 2017/10/02]

The contract with International Technical Consultant renewed, procedures and instructions prepared and sent out to all pilot investments and eco-certified hotels.

Key Actions:

5. Recommendation:

To improve the monitoring and evaluation of the Project, TCNT Project staff should, as a high priority, include under the section of “critical risks” for the remaining TCNT PIRs more description of actions taken by the TCNT Project team to address the remaining barriers (as detailed in Paras 45 and 46) to meeting the objectives of the TCNT Project.  This will assist in conveying to Regional Technical Advisors and Evaluators that the Project team is focusing on these critical risks and issues.


Management Response: [Added: 2017/10/02] [Last Updated: 2018/09/06]

The contract with International Technical Consultant renewed, regular field visits have been conducted. MRV protocols are in place for all supported low carbon tourism initiatives. With low carbon investments in the pipeline from the 3 calls for low carbon proposals, completion of the supported  investments will catalyse the use of the system of MRV protocols on a pilot basis that can be replicated for future low carbon investments in the tourism sector. Procedures and instructions for the use of MRV protocols have been prepared and sent out to supported pilot investments and eco-certified hotels. Regular reporting procedure has been established and functioning.

Key Actions:

6. Recommendation:

Recommendations and proposals for future directions underlining main objectives are provided here are high priority and additional to the recommendation in Para 76 regarding support to the NWG on the Eco-Fund.  This recommendation pertains to the additional efforts by the Project to support the NWG in sourcing capitalization for the Eco-Fund that involve:


  • ensuring efficient implementation of low carbon proposals from the 1st and 2nd calls.  Essentially, TCNT support for these low carbon proposals serve as “pilot” activities of the Eco-Fund.  As such, strong oversight of the implementation of these proposals or prompt adaptive management of these projects (to ensure timely delivery of these GHG reduction generation projects) will serve as excellent examples to potential financers (wanting to capitalize the Eco-Fund) of the readiness of Eco-Fund managers to manage scaled-up funds for low carbon tourism;
  • using the network of the Project and UNDP Montenegro, ensure that positive information on the implementation of the low carbon proposals is disseminated to foreign donors with climate funds who may be interested in capitalizing the Eco-Fund. 
Management Response: [Added: 2017/10/02] [Last Updated: 2018/09/06]

* Third Call for Proposals has been implemented, with series of information days in municipalities (2 in North, 2 in South and 2 in the Central region), excessive media campaign and direct communication with interested parties conducted by the Project Team in cooperation with the Chamber of Economy. Additional nine projects have been approved for financing. Regular public promotion of supported investments is being carried out through national media (electronic and print), Chamber of Economy newsletter, UNDP’s social networks… Series of meetings with international organizations and financing institutions (World Bank, EBRD, EU Delegation, 

* A number of analyses, studies, concepts, consultations, meetings of the NWG – Steering Committee for the establishment of the Eco Fund, have been carried out for the establishment of the Eco Fund. The Decision for establishment of Eco Fund and all other necessary internal legal acts, including Multi-annual and Annual Work Program and Financial Plan are prepared with project support. The Decision on establishment of Eco fund was adopted on June 25, 2018 by the multi-sectoral Steering Committee (Ministers of Finance, Agriculture, Transport, Sustainable Development and Tourism, Chamber of Economy) and after harmonization with the Secretariat for Legislation and relevant ministries will be submitted to the Government in September 2018. 

Key Actions:

7. Recommendation:

Recommendations and proposals for future directions underlining main objectives are provided here as lower priority, and should be implemented according to available Project time and resources. These recommendations are intended to place importance on current TCNT Project efforts and integrating them with other GHG emission reduction projects that focus on a greener economy and green growth:


  • encourage ESCO opportunities for municipalities wherever appropriate. This contracting model is being supported by the Project for EE Street lighting in Zabljak (on the 2nd call for low carbon proposals), and is a means for municipalities without funds to finance low carbon projects based on energy savings.  If resources are available, the Project should promote and provide assistance to implement ESCO opportunities with other municipalities and even private sector tourist accommodations or large facilities where an ESCO model is financially viable. The Project should also liaise frequently with the Energy Efficiency Program under the Ministry of Economy on other tourism-related entities that may be attractively implemented under an ESCO and their ongoing progress in developing ESCO related legislation;
  • continuation of technical assistance to both municipal and private sector personnel in the preparation and analysis of technical proposals for tourism-related low carbon measures. This will also be done on the basis of resources available under the Project;
  • promoting municipality interest in intercity sustainable transport links and networking of low carbon opportunities for tourism facilities. While Output 2.1 specifies this recommendation but only for coastal cities, the MTR team recommends that this intercity sustainable transport network should be extended to include the coastal cities as well as other major tourist centers inland such as Podgorica and Cetinje. For example, improvements can be made in the transport network to link all but also railways major tourist centers in Montenegro, mainly buses but also railway trains, to a common low carbon multimodal transport network. The city of Podgorica currently has plans to improve its public transport services, which the Project can assist in terms of improving the connectivity of Podgorica’s public transport system with other cities in Montenegro. The Project should be opportunistic in promotion of these intercity links as time and resources permit;
  • support efforts by MoTMA in the strategic planning of nautical transport and ferries to improve mobility along coastal destinations in Montenegro, with an aim to offset inefficient use of fossil-fueled cars and reduce traffic congestion along the coastline highway. This effort should contribute to the development of Montenegro’s National Transport Strategy that has been recently initiated by MoTMA with funding assistance from the EU.


Management Response: [Added: 2017/10/02] [Last Updated: 2018/09/06]

* Technical assistance to National Tourism Organization – through engagement of IT and Communication Expert to prepare tender dossier for developing brand new National Tourism Organization Web Portal, specifically promoting low carbon tourism offer.

* The project team encouraged local administrations to develop project proposals related to reconstruction and modernization of public lighting, based on energy performance contracts (ESCO). As a result, two pilot investments have been supported in Mojkovac and Šavnik municipality.

* The project has supported the first phase of Sustainable Maritime Transport in Boka Bay implying construction of nine solar energy powered boats, aiming an establishing regular public transport for residents and tourists, improving mobility along coastal destinations in Boka Bay, with an aim to offset inefficient use of fossil-fueled cars and reduce traffic congestion along the coastline highway.

* Project manager is involved in preparing a new program dedicated to sustainable transport, covering whole Montenegro.

Key Actions:

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