The Bar–Boljare motorway project in Montenegro has entered a new investment phase following the selection of a consortium tasked with designing and constructing the Mateševo–Andrijevica section. The winning bid, valued at approximately €693.97 million, comes from a consortium that includes POWERCHINA, STECOL, and PCCD.
This project is supported by a financing structure that combines international debt and grants, specifically featuring a €200 million loan from the EBRD and a €150 million grant from the EU. This financial arrangement significantly decreases the burden on Montenegro to fund the project solely through its budget or commercial markets.
The motorway extension is strategically vital as it addresses part of the north-south transport bottleneck previously only partially resolved by earlier completed sections. By extending towards Andrijevica, the project enhances connectivity with northern municipalities and progresses the larger transport corridor towards the Serbian border.
The anticipated construction activity will have a considerable impact on Montenegro’s domestic construction sector. A project of this scale, approaching €700 million, is expected to generate several years of work in areas such as tunneling, bridge construction, earthworks, electrical systems, logistics, and subcontracting.
While international contractors are likely to lead the main engineering components, local companies will have opportunities to engage in supplying materials, transport, civil works, accommodation, maintenance, and specialized services.
The motorway is also poised to bolster the economic appeal for investment in northern Montenegro. Current transport costs and journey times present structural challenges for sectors such as tourism, agriculture, and industrial investment outside of Podgorica and coastal regions.
Although improved connectivity alone cannot guarantee private investment, it can significantly mitigate one of the critical barriers faced by potential investors. Close attention is required regarding the fiscal implications of this large infrastructure initiative.
Such projects typically generate demand for imported equipment and necessitate multi-year counterpart funding, even when grants cover part of the expenses. Thus, maintaining execution discipline is as crucial as ensuring availability of financing.
The contract for Mateševo–Andrijevica marks a significant development for Montenegro as it provides a definitive next-stage construction package with an appointed contractor and clear financing pathways since completing the first section of the motorway.
This transition signifies a shift from planning risk to implementation risk for the project moving forward.
