Montenegro has established subcontracting conditions for the €693.97 million Mateševo-Andrijevica motorway project, limiting outsourced works to 40% of the accepted contract value. State motorway company Monteput said domestic companies seeking subcontracting opportunities must be registered in Montenegro and established. The main contractor, a consortium led by PowerChina, Stecol and PCCD, is expected to provide domestic companies with fair opportunities to participate where feasible.
Approved Domestic Subcontractors
Two subcontractors have already been approved. Belgrade-based VS Infra Design will undertake field investigations and design activities, while Kolašin-based Keker will perform access-road works. The motorway covers approximately 23 kilometres between Mateševo and Andrijevica and represents the next major extension of Montenegro’s north-south highway network.
Its financing package includes a €200 million EBRD loan, a €150 million EU grant and national budget resources. Preparatory works began in late June, while the main construction phase is expected to start approximately a year later.
Potential for Local Construction Companies
The 40% subcontracting ceiling would theoretically allow subcontracted works worth more than €250 million, although actual domestic participation will depend on technical qualifications and procurement decisions by the main contractor. Montenegrin companies are expected to have opportunities in areas including access roads, earthworks, logistics, materials supply, smaller structures and supporting infrastructure.
Large international contractors are expected to retain control over specialised activities such as core tunnelling, bridge construction and project management, where domestic capacity is more limited. The requirement that qualifying companies must have been established before 2023 limits participation to businesses meeting the specified registration condition and excludes newly created entities.
Project Scale and Financing
The motorway requires extensive tunnels, bridges and earthworks because of the northern terrain. With an overall value of almost €694 million for approximately 23 kilometres, the investment amounts to nearly €30 million per kilometre. The financing structure combines EU grant funding, EBRD lending and national budget resources. The €150 million EU grant covers a material share of construction costs, while the EBRD loan provides long-term institutional financing. The structure differs from the first section of the Bar-Boljare motorway, which relied heavily on sovereign borrowing and became a major public-debt issue.
Montenegro is developing roads, railways, airports and energy infrastructure simultaneously, while international lenders have urged the country to maintain public debt around or below 60% of GDP and make greater use of grants, international financial institution loans and private capital.
Impact on Montenegro’s Construction Sector
For domestic companies, the immediate issue is access to contracts generated by the motorway project. The investment could provide several years of activity for Montenegro’s construction sector, alongside existing demand from tourism, housing and public infrastructure. Higher construction activity could support company revenues and employment, while also increasing pressure on labour and material costs. The extent to which the available subcontracting capacity ultimately reaches Montenegrin companies will depend on their qualifications and the procurement decisions made during project implementation.
