November 9 (SeeNews) - Montenegro's government said it approved taking out a 26 million euro ($30 million) loan from the European Bank for Reconstruction and Development (EBRD), to be used to finance a road overhaul project.
The loan will add to two previously signed financing agreements which are insufficient to cover the costs of the reconstruction project, the Montenegrin government said in a statement on Friday.
In March, the EBRD said a 26 million euro loan increase to finalise the construction works and upgrade of the 16.2 km-long Lubnice - Jezerine road in Montenegro passed final review and was pending approval by its board, which was expected to be given on November 18.
The proposed loan increase will be used to finance the difference between initially estimated costs and actual construction costs based on the detailed design, the lowest tender received and additional construction costs related to the tunnel construction, the EBRD said back then.
The Montenegrin government and the EBRD signed a 5 million euro agreement in 2013 and a further 20 million euro deal in 2015 for the reconstruction of the 11.5 km-long Lubnice-Jelovica and the 3.5 km-long Jelovica-Jezerine road that includes a new 2.9 km long single bore road tunnel, and a 100m long bridge.
($ = 0.841582 euro)