The European Union (EU) will grant Montenegro an additional €50 million for the construction of the Mateševo–Andrijevica highway section, bringing the EU’s total contribution to this strategic infrastructure project to €150 million.
The funds will be secured through an amendment to the financial agreement between the Government of Montenegro and the European Commission (EC) under the multiannual action plan for 2024–2027, which continues the development of the Trans-European Transport Network (TEN-T) along Montenegro’s Route 4. The government has approved the proposal to conclude this supplementary agreement.
In October 2020, the EC adopted the comprehensive Economic and Investment Plan (EIP) for the Western Balkans, aiming to support long-term economic recovery, promote green and digital transitions, and enhance regional integration and convergence with the EU. To support the implementation of mature priority transport projects identified in the EIP, the EC will assist Montenegro in further developing the TEN-T network, particularly Route 4.
The total estimated cost of the second section of the highway from Mateševo to Andrijevica is €600 million. According to the document, €250 million will come from the national budget, and €200 million is planned as a loan from the European Bank for Reconstruction and Development (EBRD).
Previously, the EC approved €7.5 million through the Western Balkans Investment Framework for feasibility studies, updates, and project design. In July 2024, under the EIP, the EC allocated €100 million in IPA III funds to support construction of the Mateševo–Andrijevica section. This new amendment increases the EU contribution by €50 million to allow implementation through indirect management. The final financial agreement is to be implemented over 12 years, with an indicative project period of 72 months from signing.
The EU budget contribution will be disbursed in stages over four years: €1.5 million in 2024, €58.5 million in 2025, €40 million in 2026, and €50 million in 2027. The action will be carried out in cooperation with the EBRD, covering contracting, reporting, monitoring, evaluation, and visibility in line with good financial management principles.
The project is expected to generate additional domestic revenues by engaging Montenegrin construction companies, labor, and suppliers, while also enabling greater utilization of EU grant funding and enhancing competitiveness in the transport sector.
This comes after the Montenegrin government signed a €200 million loan agreement with the EBRD earlier this year for the second section of the highway.
