Financial sustainability of protected areas


Adventure race
Photo: UNDP in Montenegro

The total funding currently available for planning and administration of the protected areas system of Montenegro is estimated to be at least 50% below what is required for its effective management. With the planned expansion of the protected area system, this funding gap is expected to increase even further.  Hence, UNDP in Montenegro has launched a project “Catalyzing financial sustainability of the protected areas system in Montenegro” in order to find ways to raise the capital needed to effectively manage Montenegro’s expanding protected area system.

What is the project about?

Project activities will be directed towards fulfilling three overall objectives:

Goal 1: Enabling legal and policy environment for improved protected area financial sustainability. This set of activities will include an economic valuation of the protected areas system to support the case for sustained public investment, as well as the adoption of a National Protected Area Financial Plan (NPAFP). In addition, a set of regulatory instruments will be put in place to support implementation of the NPAFP.

Goal 2: Securing revenue-streams for the protected area system. Within this goal, a payment for ecosystem services scheme will be piloted for the watershed management service in the Durmitor World Heritage Site. A nature-based tourism concession will also be piloted in Komovi Regional Park. This goal also includes raising revenue from collecting user fees for adventure-based tourism in the protected areas of northern Montenegro.

Goal 3: The development of institutional and individual capacities of protected areas institutions to raise the management cost-effectiveness. This goal includes introducing business planning processes to different categories of protected areas and improving the fund-raising capacity of the Ministry of Sustainable Development and Tourism. A ‘help desk’ is to be created to assist protected areas in improving their cost-effectiveness.

What have we accomplished so far?

  • Supported establishment of educational programmes in protected area management and rural development, with emphasis on improving management and planning capacities with focus on financial planning and management of protected areas;
  • Developed an economic valuation of the protected areas system to support the case for sustained public investment in protected area establishment and management;
  • Developed a National Protected Area Financial Plan;
  • Designed a ‘help desk’ to assist protected areas in improving their cost-effectiveness, and
  • Prepared a recommendation for strengthening financial planning and reporting capacities of the National Parks of Montenegro, based on analysis/audit of processes.
  • Developed a plan for the usage of Tara river resources;
  • Developed a fund raising strategy for protected areas, and
  • Developed several new projects for partners for cross-border cooperation calls for proposals.

Who finances it?

Donor Name

Amount contributed


USD   950,000


USD     40,000


USD   990,000

Delivery in previous fiscal years

December 2013 USD 206,315

December 2012

USD 201,124

December 2011

USD 166,643

December 2010

USD     5,562

Project Overview
Project Start Date:
March 2010
Estimated End Date:
December 2014
Geographic Coverage:
Focus Area:
Economy and Environment
Project Officer:
Mr. Borko Vulikić
Tel. +382 20 22 30 38
Ministry of Sustainable Development and Tourism, Ministry of Agriculture Forestry and Water Management, Nature Protection Institute, Public Enterprise ‘National Parks’, Institute for Marine Biology, Public Enterprise ‘Morsko dobro’, Municipalities of Podgorica, Andrijevica, Kolašin and Kotor, Environmental Protection Agency, NGO Institute for Strategic Studies and Prognoses, NGO Natura, Local and international consultants, private sector