Montenegro’s Velje Brdo housing development near Podgorica is advancing through its initial implementation phase, with construction contracts worth approximately €77.39 million excluding VAT and a preferred bidder selected for supervision of the planned boulevard.
The Ministry of Public Works selected Podgorica-based Projectman to provide professional supervision of the boulevard works, with an offer of €76,230 including VAT, compared with the procurement’s estimated value of €399,300. The selection remains subject to an appeals period. The ministry accepted the bidder’s explanation for the low price.
The initial construction package includes a contract worth approximately €37.35 million excluding VAT awarded to Eurozox for the boulevard and a separate €40.04 million excluding VAT design-and-build contract for the first residential block, held by a consortium led by Fidija and Ing Invest.
The boulevard is planned to extend approximately five kilometres, with four traffic lanes and accompanying utility infrastructure.
The programme will require investment beyond residential construction, including roads, water supply, wastewater systems, electricity, telecommunications and public facilities as the settlement expands. This creates work for civil engineering contractors, utilities, engineering firms and equipment suppliers. The government intends Velje Brdo to increase housing supply and offer homes at prices below much of Podgorica’s commercial market, amid rising mortgage demand and elevated asking prices. Achieving that objective will depend on construction costs, land treatment, financing arrangements and the final pricing model for buyers.
Project supervision will be important for controlling costs, construction quality and schedules. Professional supervision covers the monitoring of quantities, deadlines and contractual compliance, helping to limit the risk of defects and cost overruns. The substantial difference between Projectman’s offer and the estimated procurement value could attract scrutiny during implementation. Financing for apartment buyers will be another important stage. Commercial mortgage lending will require clear property titles, registration and sales documentation, while government-supported financing could affect affordability and increase fiscal exposure.
The initial contracts mark the transition of Velje Brdo towards construction, with further implementation dependent on maintaining schedule and cost discipline as the programme expands beyond the boulevard and first residential block.
