The commencement of preparatory works on the Mateševo–Andrijevica segment of the Bar–Boljare motorway marks a significant milestone in Montenegro’s infrastructure development agenda. This project aims to enhance connectivity between the Port of Bar, Podgorica, and northern regions, while also facilitating access to the Serbian border.
This new 22-kilometre section follows the completion of the Smokovac–Mateševo priority stretch that became operational in July 2022. The construction will be undertaken by a consortium of Chinese companies, including Power Construction Corporation of China, STECOL Corporation, and POWERCHINA Chengdu Engineering Corporation, under a contract valued at €693.97 million excluding VAT. The project’s scale positions it as a central component of Montenegro’s public investment strategy for the coming years.
Financing for this segment diverges from previous phases, incorporating a €200 million loan from the European Bank for Reconstruction and Development and a €150 million grant from the European Union, with additional funding sourced from Montenegro’s state budget. This financing model reflects a shift towards a more integrated governance framework, enhancing expectations regarding procurement practices, environmental protections, and transparent contract management.
The engineering complexity associated with this project introduces heightened delivery risks. The route is designed for speeds of 100 kilometres per hour and traverses challenging mountainous terrain. It includes the Trešnjevik tunnel, measuring approximately 3.6 kilometres, along with 21 bridges totaling around 4.8 kilometres in length, and various facilities for motorway management. The intricacies involved extend beyond mere road length to encompass geological considerations and environmental safeguards.
The project timeline is noteworthy, with a design phase expected to last 14 months followed by an anticipated construction period of 46 months. This results in an overall implementation timeframe of about five years, during which various factors such as inflation, design modifications, and environmental challenges could impact project economics if not managed effectively.
From a public finance perspective, the necessity of this road is evident; however, the challenge lies in converting improved road access into actual investment opportunities. While the motorway aims to bridge the gap between Montenegro’s north and its coastal economy, successful outcomes will depend on establishing industrial zones, tourism initiatives with viable operators, and adequate supporting infrastructure.
The financial implications of this €694 million contract are significant for Montenegro’s fiscal landscape. Delays or cost overruns could have substantial repercussions on public finances, necessitating rigorous oversight in areas such as design evaluation and claims management to mitigate risks.
POWERCHINA Chengdu has committed to adhering to Montenegrin regulations and European standards throughout the project lifecycle. This includes addressing complex geological challenges and ensuring meticulous coordination during construction phases. Compliance will need to be demonstrated through effective monitoring of safety protocols and environmental practices.
The involvement of Chinese contractors also elevates the project’s regional importance by fostering trilateral cooperation among China, Montenegro, and European financial entities like the EBRD and EU. This collaborative framework may serve as a model for similar infrastructure projects across the Western Balkans that require adherence to EU-compatible financing and transparency standards.
Environmental considerations are critical to this undertaking as mountain motorway construction poses risks to local ecosystems and communities. The project’s success will hinge on integrating green construction principles into daily operations rather than treating them as mere formalities.
For Montenegro’s aspirations towards EU accession, this motorway serves both practical and symbolic purposes. It represents a test of institutional capacity to manage substantial infrastructure contracts while meeting European financing criteria and maintaining fiscal oversight.
Ultimately, the Mateševo–Andrijevica section embodies a convergence of transport policy, fiscal responsibility, and regional development potential. Its success will depend on effective execution within budgetary constraints while ensuring compliance with environmental obligations and fostering investment opportunities in northern Montenegro.
