By Cecilia Calatrava
As part of its efforts to improve connectivity and regional integration in Montenegro, the European Bank for Reconstruction and Development (EBRD) is providing a €26million(US$31.00milion) sovereign loan for the reconstruction and upgrade of the road section between the country’s northern municipalities of Berane and Kolasin.
The funding will be cover the construction of 13.9 km of road as well as the finalisation of the 2.8 kilometer long tunnel that will link Berane with Kolasin. The project will considerably shorten travel time between the two cities and improve connectivity in Montenegro’s less developed northern regions.
The loan follows two previously signed financing agreements between the EBRD and the government of Montenegro totalling €25 million.
The new funds will also support the preparation of a road asset management system, which will store road data information and help plan short and long-term road maintenance services. This will contribute to the optimisation of road planning and resource allocation in the Montenegrin road sector.
Improved connectivity and transport infrastructure are crucial for attracting investment and for further economic growth in the country. This will also support local and regional tourism, a key sector of Montenegro’s economy.
The EBRD has been involved in road sector reform in Montenegro since it began investing in the country in 2006. So far, the EBRD has invested €710 million in 74 projects in the country.
