Montenegro has officially commenced the next phase of its largest transport infrastructure initiative, beginning preparatory works on the Mateševo–Andrijevica section of the Bar–Boljare motorway. Valued at nearly €700 million, this project signifies the first major extension since the completion of the Smokovac–Mateševo section four years ago.
This highway segment is more than a mere construction endeavor; it serves as a critical test for Montenegro’s ability to manage complex infrastructure projects amid stricter international financing regulations and enhanced public procurement standards. The focus on this northern region marks a shift in investment strategy, moving away from the coastal tourism-centric narrative that has dominated in recent years.
The design and construction contract, amounting to €693.97 million, was awarded to the Chinese consortium comprising PowerChina, STECOL, and PCCD by Monteput. This project will follow a Design & Build model under the FIDIC Yellow Book guidelines, which assigns both design and construction responsibilities to the same contractor. This arrangement is particularly significant given the challenging mountainous terrain that characterizes this route.
Spanning approximately 22 kilometers, the highway will connect Mateševo, situated at around 1,060 meters above sea level, to Andrijevica at roughly 780 meters. The project entails constructing tunnels, bridges, and various infrastructure components essential for navigating difficult landscapes. Notably, it includes the Trešnjevik tunnel and 21 bridges totaling about 4.8 kilometers in length.
The financing structure for this segment differs markedly from that of previous phases. It includes an EBRD loan of up to €200 million and an EU grant of up to €150 million, marking it as one of the largest grants ever received by Montenegro from the European Union. The remaining funds will be sourced from Montenegro’s state budget. This financial mix introduces new levels of accountability regarding procurement practices and environmental considerations.
The supervision contract has been awarded to IRD Engineering from Italy for €14.45 million, covering a period of 90 months that includes addressing any defects. This supervision is crucial given the project’s complexity; it ensures that design assumptions and construction quality are monitored continuously throughout the process.
Construction is expected to take 60 months with an additional two-year defect notification period, targeting completion by late 2030. However, this timeline remains contingent upon various factors including design finalization and geological assessments.
The strategic importance of the Bar–Boljare motorway lies in its potential to enhance connectivity between key locations such as the Port of Bar, Podgorica, and northern municipalities while facilitating trade routes toward Serbia and Central Europe. Improved access is anticipated to stimulate economic activity across northern municipalities like Kolašin and Andrijevica, which have historically struggled with connectivity and investment.
The Kolašin market already illustrates how improved infrastructure can attract investments in tourism and real estate following the opening of earlier sections. Extending the motorway toward Andrijevica could further amplify development opportunities if local governance aligns with investor needs.
However, this project also poses fiscal challenges due to its substantial scale relative to Montenegro’s economic capacity. The state budget must be meticulously planned over several years to accommodate potential cost overruns or delays inherent in such complex projects.
The FIDIC Yellow Book model aims to streamline accountability by consolidating design and construction responsibilities under one contractor. Nonetheless, effective contract management will be essential to mitigate risks associated with disputes or delays that could arise during execution.
While Chinese contractors remain integral to Montenegro’s motorway development narrative, this phase incorporates European financing standards alongside Chinese construction capabilities. This hybrid approach may serve as a model for future infrastructure projects across Montenegro and the broader Western Balkans region.
Ultimately, the economic viability of this motorway segment hinges on subsequent developments beyond just this section. Full realization of its strategic value will depend on establishing additional connections towards Serbia and integrating into broader European transport networks.
For Montenegro’s aspirations toward EU integration, this project represents a crucial test of governance capabilities in managing large-scale contracts transparently while adhering to environmental standards and community engagement expectations.
The successful initiation of works at Mateševo signifies a pivotal moment for Montenegro’s infrastructure landscape. The financial implications are significant; however, the real measure of success will be determined by institutional performance over the coming years as Montenegro strives to transform connectivity into sustainable economic growth.
