BAKU, Azerbaijan, July 26. The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are helping improve Montenegro’s transport connectivity by providing financing to continue the development of the Bar-Boljare highway, aimed at connecting the Port of Bar in Montenegro with the Serbian border, Trend reports.
The EBRD is providing a sovereign loan in the amount of up to 200 million euros to Montenegro for the construction of the Matesevo – Andrijevica highway section, approximately 22 km in length, passing some of the country’s most challenging terrain and connecting the underdeveloped northern region with the more economically active central and southern regions.
Alongside the EBRD loan, Montenegro will receive an investment grant of up to 150 million euros from the EU. Of this amount, a contribution agreement for 100 million euros is being signed today, while the remaining 50 million euros is expected to be formalised in late 2025. Previously a 4.7 million euros grant for feasibility study and preliminary design was provided from the EU under the Western Balkans Investment Framework (WBIF).
This project represents a strategic priority for Montenegro and constitutes an integral part of the Trans-European Transport Networks (“TEN-T”). It aims to support Montenegro’s economic development and promote regional integration by enhancing transport connectivity both within the country and between Montenegro and neighbouring Serbia as well as further links to Central Europe. Enhanced connectivity is expected to stimulate investments, improve mobility, and reduce regional disparities. In addition, the modern infrastructure will contribute to better road safety and fewer traffic accidents.
The Project will be implemented by Monteput, the state-owned company responsible for maintenance and operation of Montenegro’s highways and motorways. The proceeds of the loan will be used to finance the detailed design, works and works supervision services.
Matteo Colangeli, EBRD Regional Director for Western Balkans said: "Modern and reliable transport infrastructure is essential for Montenegro’s economic development, especially in boosting tourism, trade, and regional integration. The Bar–Boljare Highway is more than just a road—it’s a strategic investment that will improve connectivity across the country’s challenging terrain, link the Adriatic coast with inland regions and neighbouring countries, and unlock the economic potential of northern Montenegro. We are proud that this initiative marks the EBRD’s 100th project in Montenegro, bringing our total investment in the country to over 1 billion euros since starting operation in 2006."
Johann Sattler, the EU Ambassador to Montenegro, added: “Modern and reliable infrastructure is one of the foundations for sustainable economic development, connectivity, and European integration. The EU is therefore pleased to invest 150 million euros for the development of the Bar Boljare highway. This is a clear message of support to economic development, connectivity, and road safety. It is also a clear message of support towards Montenegro’s efforts on its path of EU integration. With this common support from the EBRD and the European Union, this is a good example of Team Europe leveraging support for our close partners. This further investment will also help boost economic development of the Northern regions of Montenegro. Finally, the European Union is pleased to recall its long-standing commitment to support greener, safer, and sustainable inter modal transport modes with reduced CO2 emissions; the EU already committed 110 million euros back in 2023 towards rehabilitation of the southern part of the Bar–Golubovci parallel railway line on the same transport corridor. Over the past years the EU provided over 350 million euros of non-refundable grant support to transport development projects in Montenegro.”
Novica Vuković, the Montenegrin Minister of Finance said: “The agreements we are signing today are the result of carefully conducted negotiations and a strong partnership with the EBRD and the EU, which allow us to invest strategically in the future of Montenegro’s north and in strengthening the country’s economic connectivity. This is not just an investment in infrastructure – it is an investment in connecting Montenegro with the region and the European Union, in promoting balanced regional development, and in improving the quality of life for our citizens."
Milojko Spajić, the Prime Minister of Montenegro, concluded: “This section is not just a road – it is a symbol of our joint work with the European Union. A grant of 150 million euros speaks more than a thousand words and is an undeniable sign of trust in Montenegro. That trust and cooperation lead us to the European Union, but more importantly – they create conditions for our citizens to stay here to live, work and build their future in Montenegro.”
The EBRD is a leading institutional investor in Montenegro, with over 1 billion euros invested through 100 projects to date, supporting the country’s sustainable development, infrastructure, private sector growth, and regional integration.
Since 2007, through its Instrument for Pre Accession Assistance, the European Union provided technical assistance grants to mature transport projects ready for investments in the order of 31 million euros. The EU also supported the implementation of these projects with investment grants worth 322 million euros covering a number of rail rehabilitation projects (172 million euros) and the current major road project (150 million euros). As Team Europe together with EIB and EBRD, the European Union secured a total financial allocation to Montenegro for transport development of approximately 988 million euros. All EU grant investments are blended operations where EU donations are leveraging loans provided by partner Banks, lowering the cost for Montenegro integration into the EU’s core transport network.
