EIB finances better roads in Montenegro

The European Investment bank (EIB) and the Montenegrin Government have signed a EUR 40 million loan for the rehabilitation and upgrading of five main roads in the country. The project will also benefit from a EUR 1.5 million technical assistance grant under the Economic Resilience Initiative (ERI), the first ERI grant awarded to a project in the Western Balkans. This grant will finance the specialised professional services required to supervise the execution of the road works and implement the project successfully.

At the signature event in Podgorica, the EIB was represented by its Head of Division for Slovenia, Croatia and the Western Balkans, Matteo Rivellini, and the Montenegrin Government by Darko Radunović, Minister of Finance, and Savo Paraca, Director of the Traffic Directorate. The EU Deputy Head of the Cooperation Section in the EU Delegation to Montenegro, Audrone Urbonaviciute, also attended the ceremony (TBC).

The total length of road that will benefit from EIB financing and the ERI grant is around 180 km, a quarter of the national network. The project aims to improve road conditions and safety, thereby facilitating trade and regional integration. The scheduled works include the reconstruction and rehabilitation of several bridges and tunnels.

The ERI was launched by the EIB in 2016 following a request from the European Council. The initiative is aimed at addressing social and economic infrastructure gaps and stimulating private sector-led growth and job creation to tackle the root causes of migration. The ERI is financed mainly by the EIB’s own resources; in addition, donor pledges from Member States also contribute to the initiative.

“As the bank of the European Union, the EIB has been investing in the Western Balkans for over 40 years, bringing its expertise, financing instruments and commitment to generating impact through investments that support the priorities of the EU. As such, we are committed to addressing the transport infrastructure gap through the financing of priority projects, in particular under the Connectivity Agenda. With the loan signed today, we are glad to contribute to a project that will promote economic growth and local employment as well as contribute to the stability of international relations in the region”, said EIB Vice-President Dario Scannapieco.

The EU bank has financed 22 projects worth EUR 720 million in Montenegro since 1977, with infrastructure (road and railways) being a focus. In 2018 the EIB’s support to the country amounts to EUR 140 million, equalising the record high achieved in 2017.

Original source: EIB
Published on 28 November 2018