You have 3 free articles left this month. Get your free Basic subscription now and gain instant access to more.

Montenegro's PM expects Serbia, CRBC to agree motorway project financing soon

Author Radomir Ralev
Montenegro's PM expects Serbia, CRBC to agree motorway project financing soon

PODGORICA (Montenegro), March 22 (SeeNews) – Montenegro's prime minister Dusko Markovic said he expects Serbia to sign shortly a deal with China Road and Bridge Corporation for the financing of the construction of the Serbian part of a motorway linking Belgrade to the Montenegrin port of Bar.

"Serbia will sign a contract with CRBC these days for the financing of the entire stretch of the motorway on its territory," Markovic said, according to the transcript of a response to a question in parliament on Wednesday posted on the website of Montenegro's government.

Markovic said he will hold a meeting with representatives of CRBC and the Export-Import Bank of China (EXIM Bank) on Thursday to discuss the construction of the Matesevo-Andrijevica and Andrijevica-Boljare sections of the motorway on Montenegrin territory.

Serbia's government said in November it started talks with China on the financing of a project for the construction of a motorway that will run from Belgrade to the border with Montenegro. The negotiations started immediately after the signing of a 450 million euro ($554.3 million) agreement with China Communications Construction Company (CCCC) for the design and construction of a 30.9 km motorway section between Preljina and Pozega, in central Serbia. 

The motorway is planned to link Serbia's capital Belgrade to the Montenegrin port of Bar through Boljare, a small town on the Serbian side of the border. Last year, Montenegro said it plans to invest a total of 809 million euro in the construction of the 165 km Bar-Boljare stretch. The Export-Import Bank of China has extended a $944 million loan to Montenegro with an interest rate of 2% and a six-year grace period towards the cost of the project.

The construction of the motorway in Montenegro started in May 2015. The Smokovac-Matesevo section is considered a priority by the Montenegrin government, due to the complexity of the works, and is expected to be completed in 2019.

($ = 0.811853 euro)