The 23-kilometre Mateševo–Andrijevica section of the Bar–Boljare motorway, with a projected cost of approximately €694 million, represents a critical evaluation of Montenegro’s new infrastructure financing approach. This project is the largest undertaking under this model to date.
The design-and-build contract for this segment has been awarded to the consortium comprising PowerChina, Stecol, and PCCD, following a procurement process overseen by the European Bank for Reconstruction and Development (EBRD). The financing framework includes a €200 million loan from the EBRD, a €150 million grant from the EU, and additional national funding.
This financing strategy aims to create a more robust risk management structure compared to the initial Smokovac–Mateševo section, which was primarily funded through Chinese loans that increased sovereign risk exposure. Nevertheless, the new section remains costly on a per-kilometre basis due to challenging mountainous terrain, necessitating extensive tunnels and bridges, as well as associated geotechnical challenges.
Beyond reducing travel times, this motorway segment is intended to enhance economic connectivity. It aims to establish a functional north-south corridor that would facilitate access to Kolašin and nearby northern municipalities, bolster logistics at the Port of Bar, and help alleviate investment concentration along the coast. However, the potential economic benefits hinge on the completion of sufficient corridor infrastructure to enable through traffic; an isolated section is likely to have limited freight and toll revenue.
In the short term, construction activities are expected to contribute positively to GDP and employment levels. However, reliance on imported machinery and materials could exacerbate the trade deficit. Additionally, any unforeseen geological issues leading to change orders beyond the contracted contingency would increase fiscal liabilities.
