As part of the Economic and Investment Plan (EIP) for the Western Balkans, the European Commission has adopted a €100 million grant Financing Decision to support the construction of the Matesevo-Andrijevica section of the Bar-Boljare Highway. This highway, when completed, will connect Montenegro’s northern region with the capital, Podgorica, and play a crucial role in the country’s socio-economic development. The section is part of the extension of the Orient/East-Med corridor of the Trans-European Transport Network.

Commissioner Várhelyi said: “The EU is committed to investing in Montenegro to accelerate the country’s socio-economic development. The construction of the next section of the Bar-Boljare Highway will better integrate the Western Balkan region and unlock trade and investment potential, which is central to the EU’s Growth Plan for the Western Balkans.”

The total estimated cost of the construction of the Matesevo-Andrijevica section is around EUR 600 million. The EUR 100 million contribution from IPA III funds is the first tranche of EU support, which will be complemented by up to EUR 100 million in EU funds in the second tranche. 

The EU’s grant financing is mobilised in close cooperation with Montenegro and the European Bank for Reconstruction and Development (EBRD), which is also providing a loan agreement for this project.

Montenegro will apply competitive procurement and transparent work implementation processes that align with European standards.