Abstract
Montenegro faces serious challenges in terms of waste tire management. The main goal of our paper is to consider the financial and economic justification of the implementation of the first phase of the project of collection, takeover and transport, sorting, and storage of waste tires from the three municipalities in Montenegro. The financial feasibility analysis pointed out the need to organize the second phase of the project and the production of commercially usable and energy efficient products. That phase would lead to the desired commercial effects and will probably ensure the financial sustainability of the project. The economic feasibility analysis of the project included an assessment of the socio-economic benefits from the emission reduction of the first group of pollutants (PM, SOX, NOX, VOC, CO) as a consequence of the waste tires’ destruction, predominantly by combusting them. Unit values of pollution costs by types of gases, adjusted for Montenegro, were defined in the interval from 192 EUR/t for CO to 24,294 EUR/t for PM. We proved that the direct socio-economic benefits of this project are savings in the cost of environmental pollution. The total present value of discounted costs in the observed time period was calculated at the level of EUR 1,620,080, while the total present value of the positive socio-economic effects was estimated at EUR 1,991,180. Dynamic justification indicators suggest that this investment has a satisfactory socio-economic justification, i.e., the economic rate of return is higher than the opportunity cost of capital (ERR = 15.82%), the economic net present value is greater than 0 (ENPV = 371,100 EUR), and the benefit−cost ratio is greater than 1 (B/C ratio = 1.23).