The European Bank for Reconstruction and Development (EBRD) is still negotiating with the Montenegrin government regarding the terms of financing for the construction of the second section of the highway from Mateševo to Andrijevica. This was announced by EBRD Vice President Mateo Patrone, who stated that the project will be reviewed by the bank’s Board in June. While awaiting the outcome of the negotiations, EBRD is also planning other projects for the current year.
In 2024, the EBRD invested €104 million in nine projects in Montenegro. A tender is currently underway for the construction of the second section of the highway from Mateševo to Andrijevica, for which the European Union is expected to provide €150 million in grants, and the EBRD will provide up to €200 million in credit.
Mateo Patrone, EBRD Vice President, told Montenegro Television that the terms of the loan are still being negotiated.
“We are still negotiating with the government. It’s a process, and we don’t want to disclose the terms yet. Everything will be clear once we reach an agreement. Next week, the bank’s investment committee will review the project, and we will present it to the board’s financial committee in early June,” said Patrone. “We’ve also discussed the project with the management team at Monteput, and it’s clear that this is an absolute priority for the country.”
Improved transportation connectivity, the construction of railways, and airports are crucial for the development of tourism, which is a strategic sector making up 27-30% of GDP, as well as for the development of other areas, according to Patrone. He calls on the EBRD to invest even more in Montenegro, as they expect to stabilize growth at 3% by 2026.
“We will focus particularly on transport infrastructure, with a key focus on the reconstruction of the Golubovci-Bar railway. We will also be active in energy, energy transition, and renewable energy sources. Earlier this year, we signed a project with the Montenegrin Electric Distribution System (CEDIS) for the digitalization of the energy network. We also signed a project to support small and medium-sized enterprises through our long-term partner OTP, and we are preparing a project for energy efficiency in public buildings and schools worth €20 million,” said Patrone.
The EBRD has also secured an additional €12 million, partly funded by the European Union and the Japanese government, for financing Montenegrin businesses and households to improve energy efficiency.
Patrone emphasized that reforms, which are visible, open doors for new investments. However, challenges remain for Montenegro’s economy.
In the past period, the EBRD highlighted unfair competition and the shadow economy as challenges. Is there any noticeable progress?
“Unfair competition is a very important issue, and the government is taking it very seriously, as are the representatives of the business community with whom we’ve had discussions in recent days. I think it’s too early to say whether progress has been made, but the fact that this issue is at the top of the government’s agenda is very important,” responded Patrone.
The EBRD Vice President also noted that Montenegro has a unique opportunity to expedite its EU accession process through reforms, and the EBRD will be a reliable partner in the country’s economic development.
