Judging by the pace of payments from the State Treasury for the reconstruction of the road from Jaz to Tivat, as well as issues raised by the supervising engineer, this project is unlikely to be completed within the next six months, or by the contractual deadline at the end of January next year.
The NGO Action for Social Justice (ASP) obtained partial information from the Directorate for Transport regarding the works on this strategically important road section, crucial for Montenegrin tourism.
Tourists using this section this summer have faced dust clouds, damaged roads, and traffic delays, while local residents are impatiently awaiting completion.
The reconstruction contract for the Tivat–Jaz road, which includes part of the regional water supply construction, was signed with the Chinese consortium Shandong, valued at around €54 million (excluding VAT). The project is financed by the Regional Water Supply (€9 million) and the Directorate for Transport.
The Chinese consortium subcontracted most of the roadworks to the company Bemaks. The Regional Water Supply assigned its part of the work to Indel, with Bemaks reportedly acting as a subcontractor there as well.
According to ASP, the Directorate for Transport has paid the Chinese consortium approximately €15.2 million since the project began: nearly €4.3 million in 2024, about €4.2 million last year, and over €6.7 million in the first seven months of this year.
While payment data from the Regional Water Supply is unavailable, the fact that only about 30% of the Directorate for Transport’s investment share has been paid suggests serious delays, likely preventing project completion by the agreed deadline.
Months ago, ASP reported based on anonymous sources that the project proceeded from a flawed conceptual design dating back to 2019, which may lead to increased costs and extended deadlines.
The supervisory engineer’s May report highlights that the contractor (Chinese consortium) must speed up procurement procedures, improve subcontractor selection, and enhance documentation for quality control.
It criticizes the practice of storing materials like DN500 and DN700 pipes outside the approved construction site plan.
The report also mentions mutual compensation claims between the contractor and the investors (Directorate for Transport and Regional Water Supply), but without details.
Previously, the Chinese consortium requested about €2 million extra due to price differences for water pipes, an additional €500,000 for delays before construction permits were issued, and an extension of at least 45 days for project completion.
By May, not a single section of the road was completed.
The supervisory report states the contractor requested handover of new sections despite none being finished.
It notes insufficient workforce and administrative presence on site, and that the investor failed to provide access to the contractor in section 8.
The engineer concludes there have been delays on both sides—contractor and investor.
