Montenegro’s Appellate Court has rejected the state’s appeal and upheld the Commercial Court’s ruling, ordering the government to pay €4 million plus interest from February 1, 2022, to the company “Univerzal Monte” in a dispute over the Meljine–Petijevići road construction. The state must also cover €21,970 in legal costs.
The dispute began in 2022 when “Univerzal Monte” sued the state over the road, initially built in 2008 under a BOT (Build-Operate-Transfer) agreement, which granted the company usage rights for 20 years before returning it to the Municipality of Herceg Novi. The BOT agreement was terminated by the government in May 2021, halting toll collection on the road.
The Commercial Court confirmed that “Univerzal Monte” fulfilled all obligations under the termination agreement, including submitting construction documentation and completing road repairs, making the state liable for the payment. The Appellate Court agreed, stating the company acted in good faith and that claims of contract nullity by the state were unfounded.
The state’s previous counterclaim seeking to annul the agreement was also dismissed, as the agreement legally obligated the government to compensate “Univerzal Monte.” The decision underscores the government’s responsibility to honor contractual obligations, despite prior administrative and procedural disputes.
The ruling followed multiple appeals and retrials, including a previous annulment by the Appellate Court due to procedural issues, before the final confirmation in April 2025.
