The Competition Protection Agency of Montenegro has ruled that the planned allocation of state funds for the Bar–Boljare highway project, specifically the Mateševo–Andrijevica section, does not constitute state aid. The project is financed through a combination of a €200 million EBRD loan, €100 million in EU grants via the IPA III program, an expected additional €50 million, and the remainder from Montenegro’s capital budget.
The highway, managed by the state company Monteput, is of strategic importance, forming part of the Western Balkans–Eastern Mediterranean corridor within the Trans-European Transport Network (TEN-T). The agency noted that Monteput does not gain a selective market advantage since it is the only company legally authorized to manage the highway network in Montenegro. Revenue from tolls will belong to Monteput but its distribution is determined by the government.
The EBRD loan, signed last month, has an 18-year term including a four-year grace period, with standard EBRD financial terms (variable interest at Euribor +1%, processing fee of 1%, annual 0.5% on undrawn amounts, and 0.125% on early repayment or cancellation).
The first phase of tendering for design and construction of the Mateševo–Andrijevica section received ten bids, with technical evaluations ongoing. Qualified bidders will be invited to submit financial offers, which Monteput will evaluate under EBRD rules, with final approval by the bank. Construction is expected to begin at the end of this year.
The project is expected to be implemented over five years, with an additional two years allocated for correcting deficiencies. EU grant funds have already been made available through the multi-year IPA 2024–2027 program.
