|
EBRD provides first road-sector loan in Montenegro
€11.5 million will help rehabilitate road networks, improve safety
The EBRD is lending Montenegro €11.5 million to help rehabilitate important
road networks and stabilise areas prone to landslides. It is the Bank’s first
project in the road sector in the republic.
The 15-year loan – guaranteed by Serbia and Montenegro – will help improve a
portion of the road which links Mioska to Kolasin on the main
Podgorica-Belgrade single carriageway. It will help build a new 1-km climbing
lane, extend existing tunnels and help stabilise high-risk slopes where
landslides are both common and dangerous. A portion of the loan will also help
upgrade 3 km of road from Cetinje to Obzovica. Additionally, it will promote
road-sector reforms at an institutional level.
Sue Barrett, EBRD Deputy Director for Transport, said the project is very
important for Montenegro because in addition to promoting road safety for
residents, tourists and businesses, it will help promote broader reform in the
sector. Improving administrative and institutional capabilities and
streamlining institutions responsible for this sector is crucial for
efficiency, she added.
From its turquoise-coloured coastal waters to its charming towns and cities
like Budva, Montenegro has a lot to offer its growing number of tourists. And
as the only seaport link to Serbia, and the major road that connects Croatia
and Bosnia and Herzegovina to Albania, Kosovo and FYR Macedonia, this republic
of 680,000 people is of strategic importance for business in the region.
Igor Luksic, Montenegro’s Minister of Finance, said the Government of
Montenegro is highly committed to improving road safety, efficiency and
usability to benefit its residents, tourists and businesspeople. By working
with the EBRD to improve such infrastructure, we are also helping to better
connect countries in the Western Balkans, which will support the regional
integration process, said Mr Luksic.
An additional €485,000 to support institutional strengthening in offices
responsible for the sector and to help assess any environmental impact from
the project was provided by the European Agency for Reconstruction, while
France is providing €750,000 to supervise forthcoming engineering works. By
working with our partners like the EAR, and with support from donor countries
such as France, we are helping to improve driving standards and reforms in
Montenegro’s road sector, Ms Barrett said.
The EBRD is the largest investor in Serbia and Montenegro, having committed
nearly €800 million in 38 projects.
|
