European Union and Austria signed a partnership within the Montenegro SDG Acceleration Fund

Podgorica, 23 October 2023.

High representatives of the Delegation of the European Union, Austria and the United Nations system in Montenegro, in the presence of the President and Prime Minister of Montenegro, signed an agreement on the allocation of funds to the Montenegro SDG Acceleration Fund. The Fund is a new generation financial tool established by the UN team in the country, which seeks to pool donor funds that will be directed towards development initiatives.

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The President of Montenegro, Jakov Milatović, said that the Fund is not only a financial mechanism, but a powerful means of influence adding that “today's gathering signifies the strength of Montenegro's partnership with the United Nations, the European Union and partner countries.”

"Our country has shown its commitment to achieving the Sustainable Development Goals by encouraging this initiative and supporting the implementation of the Strategic Framework of Cooperation agreed by the Government of Montenegro and the United Nations. We have also sent a clear signal that Montenegro is focused on development in strategic areas by making a significant contribution to the Fund and paving a way for other countries to do it." – said Milatović.

"With this initiative, we promote the values of the UN, but also generate new value for the citizens of Montenegro. This is the best indicator that a good and inclusive policy pays off and that Montenegro has friends all over the world. We owe a gratitude to the EU, which strongly supports us in this way as well. I invite other countries to join in doing things together, not only for the benefit of Montenegro, but also to send a message of peace and prosperity to everyone, because Montenegro, as an ecological country, is entitled to advocate the Sustainable Development Goals." - said the Prime Minister of Montenegro, Dritan Abazović.

The European Union allocated two million EUR for the Montenegro SDG Acceleration Fund, while Austria allocated EUR 1.5 million for this purpose.

The Ambassador of the European Union in Montenegro, Oana Kristina Popa, said that support to the Montenegro SDG Acceleration Fund is a new and innovative form of cooperation.

"We are establishing a unique framework that will allow us access to all 18 UN agencies working in Montenegro. Thus, we will make the best use of their expertise in supporting the necessary reforms and development efforts of Montenegro. Support to the Fund is part of the EU aid package called the Instrument for Reforms, which was created to support Montenegro in solving difficult and structural obstacles to growth, and will include other international organizations, such as the EBRD and the World Bank," said Popa.

"Austria is joining this partnership because of its’ unique setup, its transformative and innovative potential. As such, the Fund is aligned with Austrian foreign policy – to support multilateralism through a strong role of the United Nations, and to support the European perspective of the Western Balkans to progress decisively on their path towards joining the EU - also in the interest of regional stability," said Karl Müller, Ambassador of Austria to Montenegro

Montenegro SDG Acceleration Fund supports the implementation of the UN Sustainable Development Cooperation Framework 2023-2027, a strategic five-year cooperation plan of the Government of Montenegro and the United Nations. By consolidating and directing funds towards development interventions, this Fund aims to provide strategic support for the acceleration of Montenegro's accession to the European Union and at the same time the implementation of the Agenda for Sustainable Development 2030.

UN Resident Coordinator in Montenegro, Peter Lundberg, thanked the European Union and Austria for joining the Fund.

"What we are building in Montenegro with this Fund is a precedent in the development system of the United Nations and an inspiration to other countries. We are very proud to present to you today a new platform for donations and the launch of the Fund's partnership with the private sector. The donor platform, as one of the proofs of the Fund's innovative and inclusive approaches, represents an invitation to the private sector, individuals and friends of Montenegro and United Nations to get involved in supporting the sustainable development of the country," said Lundberg, announcing the first partnership of that kind with the Electric Power Company of Montenegro.

The latest contributions are continuation of support to the Montenegro SDG Acceleration Fund. Previously, contributions to this Fund were provided by the governments of Luxembourg, Switzerland and Montenegro.

The Fund is designed to support strategic initiatives in three priority areas of the UN Sustainable Development Cooperation Framework 2023-2027: 1) inclusive economic development and environmental sustainability, 2) human capital development, reducing vulnerability, social inclusion and 3) social cohesion, people-centred governance, rule of law and human rights.