Montenegro has selected the consortium that will design and build the Mateševo–Andrijevica section of the Bar–Boljare motorway, opening the next construction phase of the north-south corridor. The winning bid is valued at approximately €693.97 million and was submitted by a consortium comprising POWERCHINA, STECOL and PCCD.
Financing for the project combines international lending with European grant support. The structure includes a €200 million loan from the EBRD and a €150 million EU grant, reducing the portion of project costs that Montenegro must cover through its own budget or commercial-market financing. The new section extends the motorway beyond the previously completed part of the Bar–Boljare corridor. The existing section addressed only part of the country’s north-south transport bottleneck, while the extension towards Andrijevica will improve connections with northern municipalities and advance the wider route towards the Serbian border.
The scale of the contract represents a significant construction programme for Montenegro. With a value approaching €700 million, the project is expected to generate activity over several years in tunnelling, bridge construction, earthworks, electrical systems, logistics and subcontracting. The principal engineering package will be carried out by international contractors, while domestic companies can participate in areas including materials, transport, civil works, accommodation, maintenance and specialist services. The motorway is also linked to investment conditions in northern Montenegro. Higher transport costs and longer journey times have been among the structural disadvantages affecting tourism, agriculture and industrial investment outside Podgorica and the coastal area.
Improved road connectivity can reduce one of those constraints, although transport infrastructure alone does not create private investment. The project’s financing and fiscal requirements will extend beyond the initial funding package. Large infrastructure developments generate demand for imported equipment and require Montenegro to provide multi-year counterpart funding, including where grants cover part of the overall cost.
The Mateševo–Andrijevica award provides Montenegro with a defined construction package, a selected consortium and identified financing following completion of the first motorway section. The project therefore enters its implementation phase, with construction execution becoming the principal focus following the selection of the contractor and establishment of the financing structure.
