Contractor for second section of the highway to be selected in September; preparatory works to follow

€150 million in EU grant secured for next phase of highway construction

The Government of Montenegro and the European Bank for Reconstruction and Development (EBRD) signed a Loan Agreement and Project Agreement for the financing and implementation of the construction of the second section of the Bar–Boljare highway.

At the signing ceremony held at Villa Gorica, Prime Minister Milojko Spajić emphasized the strategic importance of this project. The agreements secure €150 million in non-refundable EU grant support and a favourable €200 million loan from the EBRD.

The selection of the contractor for the second section is expected in September, with preparatory works commencing immediately thereafter.

Prime Minister Spajić reaffirmed that developing transport infrastructure remains an absolute priority for the Government, as a foundation for Montenegro’s sustainable development.

Despite the challenges and route changes that required additional time, we now have tangible results – the legal framework is in place, and the financial structure is complete. The agreements are signed. The first step has been taken — the next is construction, Spajić stated.

We understand citizens are impatient — and rightly so. But great achievements are worth the wait. This section is not just a road – it is a symbol of our joint work with the European Union. A grant of €150 million speaks more than a thousand words and is an undeniable sign of trust in Montenegro. That trust and cooperation lead us to the European Union, but more importantly – they create conditions for our citizens to stay here to live, work and build their future in Montenegro, he added.

EU Ambassador to Montenegro Johann Sattler underlined the significance of this investment, highlighting that the €150 million grant is the largest the EU has ever awarded to Montenegro.

The European Union is investing €150 million in non-refundable grant support for the construction of the highway section from Mateševo to Andrijevica. This is not just another road. It is a key strategic investment in the future of Montenegro, particularly in the north, said Ambassador Sattler.

He noted that this substantial support also comes with expectations. When we invest European money, it means we also expect European quality. This means the project will be implemented according to the highest standards – with fair public procurement, environmental protection, respect for local communities, and transparency in the disbursement of funds. This is what citizens of Montenegro expect from their institutions. That’s why this investment is so important, he added.

For the EBRD, this highway marks the 100th project supported in Montenegro.

Modern and reliable transport infrastructure is essential for Montenegro’s economic development, especially in boosting tourism, trade, and regional integration. The Bar–Boljare Highway is more than just a road—it’s a strategic investment that will improve connectivity across the country’s challenging terrain, link the Adriatic coast with inland regions and neighbouring countries, and unlock the economic potential of northern Montenegro. We are proud that this initiative marks the EBRD’s 100th project in Montenegro, bringing our total investment in the country to over €1 billion since starting operation in 2006, said Matteo Colangeli, EBRD Regional Director for Western Balkans.

The highway construction will be financed through a combination of EU grant support, EBRD loans, and the national budget. This structure demonstrates Montenegro's capacity to plan and implement major infrastructure projects transparently, sustainably, and responsibly.

The agreements we are signing today are the result of carefully conducted negotiations and a strong partnership with the EBRD and the EU, which allow us to invest strategically in the future of Montenegro’s north and in strengthening the country’s economic connectivity. This is not just an investment in infrastructure – it is an investment in connecting Montenegro with the region and the European Union, in promoting balanced regional development, and in improving the quality of life for our citizens, said Minister of Finance Novica Vuković.

Over the past year, preliminary designs have been completed for Montenegro’s full planned network of highways and express roads, totalling 585 kilometres. The Ministry of Transport expects all conceptual designs for the Bar–Boljare highway route to be finalized by the end of next year.

By successfully concluding this agreement, we confirm that all technical, legal, and procedural standards required by one of Europe’s most reputable financial institutions — the EBRD — have been fully met. This achievement is also the result of several months of intensive cooperation between the Ministry of Transport, the Ministry of Finance, Monteput, and international partners. Regarding the implementation of the second section, a contract with the consultant has already been signed in accordance with EBRD rules, while the tender procedures for selecting the contractor and supervisory body are in their final stage, stated Minister of Transport Maja Vukićević.

In addition to Minister Vukićević, the Project Agreement for the second highway section was signed by Director of Monteput Milan Ljiljanić and Director of Transport Administration Radomir Vuksanović.