(January 2006) The Government of Montenegro (GOM) is setting up a Water Sector Revolving Investment Fund (RIF), using the U.S. water state revolving funds as a model for financing water infrastructure. Mayflower Partners was engaged by USTDA to develop a technical assistance (TA) program to assist development of the RIF and advised USTDA to provide a grant to GOM of $463,950 for this purpose. Montenegro split from Serbia in 2006. It has decided that its best opportunity for increasing economic development is to focus on the use of its approximately 119 mile coastline and develop its tourism industry to generate foreign currency earnings. Mayflower worked with GOM and the U.S. Agency for International Development to develop the TA. USAID has helped the GOM formulate its water sector reform strategy and the GOM is searching for best practice models that fit Montenegro’s needs. USAID expects that its Global Development Alliance (GDA) Water Revolving Fund will actually establish the fund. The GDA, a USAID Business Model for public-private partnerships, has generated promising early results through the application of more than $5 billion in combined public-private funds since 2001.