Montenegro will secure a €200 million loan from the European Bank for Reconstruction and Development (EBRD) to finance the construction of the second section of the Bar-Boljare highway, between Mateševo and Andrijevica. The loan agreement stipulates that funds will be disbursed in two tranches of €100 million each, with the first tranche provided upon signing the contract, and the second tranche becoming available three years later. The loan agreement signing is scheduled to take place at Vila Gorica.
This financing follows months of intensive coordination between the Ministry of Transport, Ministry of Finance, Monteput company, and EBRD representatives, meeting strict technical, legal, environmental, and procedural standards. Alongside the loan, Montenegro has already secured €150 million in non-repayable grants from the European Commission, underscoring strong EU support for the project.
The government approved the borrowing plan as part of the 2025 budget and authorized negotiations with the EBRD. The loan carries an 18-year repayment term, including a four-year grace period. Interest terms follow EBRD’s standard conditions: a variable annual rate of Euribor +1%, a 1% loan processing fee, and additional fees related to undrawn amounts, cancellation, and early repayment.
Monteput, a government-owned company, will be the project’s managing entity responsible for securing permits, adhering to international standards, and maintaining the highway. The Ministry of Transport and the Traffic Administration will oversee the project’s implementation and capital funding. Separate protocols between these bodies and Monteput will govern budget execution.
The Mateševo-Andrijevica section will extend the existing Smokovac-Mateševo segment, connecting northeastern Montenegro—home to about 12% of the population—with the central region. This highway is part of the European corridors E-65 and E-80, linking the Adriatic coast with Serbia and Central Europe via the TEN-T network, crucial for Montenegro’s regional and EU connectivity.
The EBRD also provided a €300,000 grant to support consultancy services for the project implementation unit within Monteput.
As of May, ten bids were submitted in the first phase of tendering for design and construction, including consortia from Turkey, Azerbaijan, China, India, the Netherlands, and others. Monteput is evaluating technical proposals before inviting qualified bidders to submit financial offers. The EBRD supervises the process to ensure transparency, with final approval granted by its Board of Directors.
The estimated cost of the Mateševo–Andrijevica highway section is approximately €550 million, with the final amount to be determined after the second tender phase concludes.
