EBRD provides a €40m for better roads in Montenegro

Fire in Montenegro; Photo: Tanjug / Edib Tahirović

PODGORICA – As part of an effort to improve regional integration in the Western Balkans, the EBRD provides a €40m loan to contribute financing the reconstruction of 216km of main roads in Montenegro.

The loan will be assigned to the Ministry of Transport and Maritime Affairs in three tranches.

The first €10m tranche will be used for road sections between Rozaje and the Spiljane village near the border with Serbia.

It is expected that the second and third €15m tranches will be available during 2018 and 2019, for the modernization of the roads in the south: Podgorica – Danilovgrad and Tivat – Jaz.

“This project shows the commitment of our government to support the development of the country’s road infrastructure. This is important for economic growth and regional integration. The investment will ease the flow of goods and people, reduce transport costs and increase road safety,” said finance minister Darko Radunović.

Jap Sprey, head of the EBRD office in Podgorica, said that cross-border and national transport infrastructure were crucial for further growth and investment.

“Quality traffic connections can significantly improve access to jobs, markets, schools and hospitals in Montenegro. This will particularly strengthen the tourism sector, which makes a significant contribution to the economy,” he added.

EBRD is the leading institutional investor in Montenegro. So far, it has invested €530m in over 50 projects in the country. Its investment is aimed to make the Montenegrin economy more competitive, integrated and “green”.

According to the latest economic forecast of the EBRD, the Montenegrin economy will grow by 3.7% this year and 3.3% in 2018.