Source: Beta | Tuesday, 09.12.2014.| 11:01
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Montenegrin Parliament approves construction of Bar- Serbian border highway

(Photo: Aleksandar Parezanović)

The Montenegrin Parliament confirmed on Monday, December 8, 2014, with the ruling coalition votes, the project of the Government for the construction of Bar-Serbian border highway.

The Assembly confirmed the plan of the Government to start the construction of the first section of 42 km of highway which will mainly be funded by the Chinese, state-owned Eksim bank.

The works are expected to start soon while Chinese investors are announcing the end of the first section in four years.

The future highway total length is 169 km. The state indebted at the Chinese bank for EUR 687 m, while the Government will provide the remaining EUR 120 m. The loan is on 20 years with an interest rate of 2% and the start of six years.

Majority of economic experts, however, pointed out that the project is expensive and that “it is a bomb for fiscal governmental system” which is forced to increase debts due to highway construction.

When it comes to the decision of Montenegro to build highway, the world credit rating agencies, Moody's and Standard & Poor's, reacted through decrease of its credit rating and Montenegrin economy perspective deterioration grade
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