As part of its effort to improve regional integration in the Western Balkans, the EBRD is providing a EUR 40 million loan to contribute to the financing of the reconstruction of 216 km of Montenegro’s main roads.
The loan will be extended in three tranches to the Ministry of Transport and Maritime Affairs.
As the press release says, the first tranche of EUR 10 million will be used for a road section between the towns of Rozaje and the village of Spiljane near the Serbian border. The second and third tranches, each of EUR 15 million, are expected to be made available in 2018 and 2019 for the upgrade of the Podgorica-Danilovgrad and Tivat-Jaz road sections in the south, respectively.
– This project demonstrates our government’s commitment to supporting the development of the country’s road infrastructure. This is important for economic growth and regional integration. The investment will facilitate the flow of goods and people, reduce transport costs and increase road safety – said Montenegrin Minister of Finance Darko Radunovic.
Sue Barrett, EBRD Director for Transport, said that some of Montenegro’s main roads were winding through the mountains and that some lay next to the sea, making them very scenic, but also vulnerable to weather shocks.
– In order to help avoid the risk of erosion, landslides and floods, the EBRD-financed rehabilitation project will include improvements such as increased drainage capacity, reinforced road embankments and special bridge designs.
The press release adds that the EBRD is a leading institutional investor in Montenegro. To date the Bank has invested EUR 530 million in over 50 projects in the country. According to the EBRD’s latest economic forecast, the Montenegrin economy will grow by 3.7% this year and 3.3% in 2018.