China’s Exim Bank approves loan worth EUR 687 million for Montenegro highway's construction

Podgorica, Montenegro (18 September 2014) – China’s Exim Bank has approved a loan worth around EUR 687 million to Montenegro for the construction of the Bar-Boljare highway’s priority section Smokovac-Uvač-Mateševo, Montenegro’s Transport Minister Ivan Brajović told the press following today’s Cabinet meeting.

He explained the Government of China has to consent to the loan and it is expected that all the procedures in both China and Montenegro that will lead to the signing of an interstate agreement are to be completed in a month and a half. Minister Brajović added the construction works on the priority section can be expected to start by the end of 2014.

In July 2013, the Government of Montenegro selected Chinese companies CCCC International (China Communications Construction Company) and the CRBC (China Road and Bridge Corporation) as best bidders for the construction of the Bar-Boljare highway, that is, the priority section of the route. The offered price for the construction of the priority part of Montenegro’s greatest infrastructural project was EUR 809.58 million.

Exim Bank’s preferential loan is to provide 85% or EUR 687 million of the amount, whereas the remaining 15% (EUR 120 million) has to be provided by Montenegro.