Montenegro and the European Bank for Reconstruction and Development (EBRD) have signed a €30 million sovereign loan agreement to deploy intelligent transport systems across the country’s national road network.
The project will introduce real-time traffic information, improve incident and traffic management, strengthen cybersecurity measures and support the climate resilience of transport infrastructure.
The investment is smaller in scale than Montenegro’s motorway and expressway programme, but it targets operational challenges affecting the existing road network, including seasonal congestion, limited alternative routes, road-safety risks and weather-related disruptions. Digital traffic management is expected to improve the effective capacity of existing roads before larger transport construction projects are completed.
Operational efficiency becomes focus of transport investment
As the financing is structured as a sovereign loan, the project’s economic impact will be assessed through improvements such as reduced accident rates, more predictable travel times and lower disruption costs, rather than direct project revenues.
The implementation will depend on procurement standards, system integration, data ownership arrangements and long-term maintenance, alongside the installation of roadside infrastructure and control-centre equipment.
Tivat wastewater infrastructure project advances
A separate infrastructure contract was signed in Tivat covering the expansion of the sewerage network, replacement of a distribution pipeline in Donja Lastva, and reconstruction of the main sewer collector through Donja Lastva and Seljanovo. The mandatory works awarded to MPP Jedinstvo have a total value of €9.4 million.
The project is linked to tourism and property development, as wastewater and water infrastructure capacity in the Bay of Kotor increasingly influences the ability of hotels, residential developments and mixed-use projects to secure approvals and operate while reducing pressure on coastal areas.



