€150 million EU grant secured for next phase of highway development

The Government of Montenegro has formalized a Loan Agreement and Project Agreement with the European Bank for Reconstruction and Development (EBRD) to fund and execute the construction of the second section of the Bar–Boljare highway.

During the signing ceremony at Villa Gorica, Prime Minister Milojko Spajić highlighted the project’s strategic significance. These agreements will provide €150 million in non-repayable EU grant support and a favorable €200 million loan from the EBRD.

The contractor selection for the second section is anticipated in September, with preparatory work set to begin immediately after.

Prime Minister Spajić reiterated that advancing transport infrastructure is a top priority for the Government, serving as a cornerstone for Montenegro’s sustainable development.

Despite various hurdles and necessary reroutes that caused delays, we have achieved concrete outcomes – the legal framework is established, and the financial setup is complete. The agreements are formalized. We have taken the first step — next is the construction phase, Spajić remarked.

We recognize that citizens desire progress — and rightly so. However, significant achievements require patience. This section represents more than just a roadway – it symbolizes our collaborative efforts with the European Union. A €150 million grant is a testament to trust in Montenegro and embodies our aspirations for EU integration and a better future for our citizens, he added.

EU Ambassador to Montenegro Johann Sattler emphasized the value of this investment, noting that the €150 million grant is the largest the EU has ever granted to Montenegro.

The European Union is contributing €150 million in non-repayable grants for the highway section from Mateševo to Andrijevica. This project is not merely another road. It constitutes a crucial strategic investment in Montenegro’s future, especially in the northern regions, stated Ambassador Sattler.

He further articulated that with this considerable support comes expectations. When European funds are invested, it is expected that the highest quality standards are met. This implies that the project must adhere to strict public procurement practices, environmental sustainability, community respect, and transparency regarding fund allocation. These are the standards that the citizens of Montenegro expect from their government institutions, he added.

For the EBRD, this highway project marks its 100th initiative in Montenegro.

Modern and efficient transportation infrastructure is vital for Montenegro’s economic growth, particularly in enhancing tourism, trade, and regional integration. The Bar–Boljare Highway is a strategic asset that will enhance connectivity across the country’s challenging landscapes, linking the Adriatic coast with inland areas and neighboring nations, thus unlocking northern Montenegro’s economic potential. We are proud that this project represents the EBRD’s 100th endeavor in Montenegro, contributing to a total investment exceeding €1 billion since 2006, remarked Matteo Colangeli, EBRD Regional Director for the Western Balkans.

The highway construction will be funded through a mix of EU grants, EBRD loans, and the national budget. This structure illustrates Montenegro’s capability to plan and execute significant infrastructure endeavors transparently, sustainably, and responsibly.

The agreements being signed today are the culmination of meticulous negotiations and a robust partnership with the EBRD and the EU, enabling us to invest strategically in the future of northern Montenegro and enhance the country’s economic connections. This is not only an infrastructure investment — it is about linking Montenegro with the region and the EU, fostering balanced regional growth, and improving citizens’ quality of life, remarked Minister of Finance Novica Vuković.

In the last year, preliminary designs for Montenegro’s comprehensive highway and express road network, totaling 585 kilometers, have been finalized. The Ministry of Transport anticipates completing all conceptual designs for the Bar–Boljare highway route by the end of next year.

By successfully concluding this agreement, we confirm that all technical, legal, and procedural standards set by one of Europe’s most esteemed financial institutions — the EBRD — have been thoroughly satisfied. This accomplishment stems from several months of intense collaboration among the Ministry of Transport, the Ministry of Finance, Monteput, and international partners. Regarding the implementation of the second section, a consultancy contract has already been signed in compliance with EBRD guidelines, with tender processes for contractor selection and supervisory bodies nearing completion, stated Minister of Transport Maja Vukićević.

Alongside Minister Vukićević, the Project Agreement for the second section of the highway was also signed by Director of Monteput Milan Ljiljanić and Director of Transport Administration Radomir Vuksanović.