Montenegro, China Exim Bank to sign EUR 689mn credit contract for key motorway project on Oct 30 - report

By bne IntelliNews October 29, 2014

The Montenegrin government and China Exim Bank will sign on Thursday, Oct 30, the EUR 689mn credit contract for the financing and construction of the first priority section of the major Bar-Boljare motorway project, according to unofficial report of Portalanalitika.me.

The deal will be reportedly signed in the Chinese embassy in Podgorica by transport minister Ivan Brajovic, finance minister Radoje Zugic and representatives of Exim Bank. As previously announced, the Chinese loan is expected to have a 20-year maturity and five-year grace period plus a 2% fixed interest.

Once the contract is signed, the Montenegrin parliament could proceed with adopting the special law on the motorway construction - after which the building works could start. Brajovic said last month he believes the construction works could start by end-2014.

The priority 44-km motorway section of the future motorway will be built by Chinese firm CRBC. Construction works are expected to last four years. The complete cost of the section is EUR 809mn and the Montenegrin government is expected to provide the remaining EUR 121mn from other sources.

Bar-Boljare will link Montenegro’s Adriatic coast with its border with Serbia in the north – and will be part of a bigger motorway connecting Bar with the Serbian capital Belgrade. Serbia and Montenegro have said they might seek EU financing for this and other cross-border infrastructure projects.

China’s CRCB and its parent company CCCC won last year the tender to build the priority Smokovac (a Podgorica suburb)-Matesevo section of the full 169-km project with the support of the China Exim Bank loan. 

The World Bank and the IMF have warned that the project’s borrowing needs might destabilise Montenegro's fiscal position and result in a jump of its public debt.

Related Articles

UNCITRAL dismisses all CEAC's claims against Montenegro in KAP case

The United Nations Commission on International Trade Law (UNCITRAL) arbitration tribunal dismissed all claims of CEAC Holding, owned by Russian businessman Oleg Deripaska, against ... more

Montenegro’s government adopts urgent budget revision

Montenegro’s government has adopted an urgent budget revision to redirect funds for social payments due in November and December, a statement on the government’s website said on November 8. ... more

Russian nationalists planned to kill Montenegrin PM Djukanovic, prosector claims

Russian nationalists organised the alleged coup attempt on the eve of Montenegro’s October 16 general election and planned to assassinate Prime Minister Milo Djukanovic, Montenegro’s special ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss