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Add to Preferred SourcesThe European Investment Bank (EIB) signed a second tranche worth €40 million for the rehabilitation of 180 kilometres of road along the five main routes in Montenegro.
The loan from the EU bank is complemented by a €1.5 million technical assistance grant awarded under the Economic Resilience Initiative (ERI). It is the first ERI grant to be awarded to a project in the Western Balkans. The total EIB investment worth €80 million is expected to increase road safety and efficiency and facilitate faster economic recovery and regional trade.
The modernisation of roads and increased safety along the reconstructed sections will reduce vehicle operating costs, commute times, and the frequency of road accidents. Some 4 100 temporary jobs will be created under this project, supporting the private sector in Montenegro.
EIB Vice-President Dario Scannapieco said: “Revitalisation of the transport infrastructure remains highly important for smoother trade, employment and the overall economic recovery of the Western Balkans. Improved capacity of the local economies to absorb and respond to crises creates an environment for economic growth and job creation. By rehabilitating one quarter of the entire national road network in Montenegro, we aim to support regional connectivity and reinforce integration between the Western Balkan countries and the EU. Access to safe and modern roads should not be a privilege, but a necessity for all in our efforts towards increased competitiveness, sustainability and faster EU accession.”
The loan will enable the upgrade of sections of road along the corridor between Tivat and the port of Bar, between the northern city of Danilovgrad and the capital Podgorica, and between Lepenac and the Spiljani border crossing. Sections of road between Ribarevina and Dobrakovo, and Pljevlja and Mihajlovica – both at the border with Serbia – will also be reconstructed. The first tranche under this loan was signed in November 2018.
Original source: EIB
Published on 31 July 2020