Construction of Matesevo-Andrijevica Section (EBRD-55511)

Countries
  • Montenegro
Geographic location where the impacts of the investment may be experienced.
Specific Location
Bar-Boljare Highway (Matesevo - Andrijevica section)
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 9, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Montenegro - Monteput Doo
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Law and Government
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 215.75 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 200
Converted using 2025-03-06 exchange rate.
Project Cost (USD)
$ 642.93 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 596
Converted using 2025-03-06 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jul 8, 2025

Disclosed by Bank Mar 6, 2025


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of the provision of a tranched sovereign loan in the amount of up to EUR250 million to the state of Montenegro, represented by the Ministry of Finance, for the benefit of Monteput, the state-owned enterprise, responsible for the construction, maintenance and operation of Montenegro's highway, motorways and the Sozina tunnel. The loan will finance the construction of the Matesevo - Andrijevica section, approximately 22 km in length of the Bar - Boljare Highway. The Project will be implemented in accordance with Yellow FIDIC contract terms, under a 'Design and Build' contract.

The Project is complex due to the challenging mountainous terrain from Matesevo (at an altitude of approximately 1,060 m) to Andrijevica (at an altitude of around 780 m).

The Project is expected to be co-financed with investment grants provided by the European Union ("EU").

The Project will support the development of the Bar - Boljare Highway, which is a strategic priority for Montenegro. The Bar-Boljare Highway is part of Route 4 of the Core Network of the Western Balkans and has been established as an indicative extension of the Trans-European Transport Networks ("TEN-T"). The Project will support Montenegro's economic development and contribute to the country's regional integration by improving connectivity of Podgorica and coastal area on one side and northern part of the country and neighbouring Serbia and Central Europe, on the other. The Bar - Boljare Highway is of utmost importance for Montenegro and the Western Balkans as it aims to establish a vital transportation route connecting the Port of Bar with Podgorica and further extending it to the Serbian border and Belgrade. This highway is set to act as a pivotal infrastructure component providing efficient connectivity between major cities and key transport hubs in the region while offering diverse transportation options.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised A (ESP 2019).

There were several written comments registered from the public prior the 120 days period, flagging their discontent for changing the initial highway route and the biodiversity impact that this change will have on Krastica and Lim River.
The Project area is in the eastern part of Montenegro, bordered by the Bjelasica mountains to the north and the Komovi mountains to the south. It stretches in an east-west direction and mainly follows the valley of the Krastica River, along with its tributaries (Rajoviia Potok, Dubokalj, Novoviia Potok, Prisojaiki Potok, Duraiki Potok, Gnjili Potok), all of which flow into the Lim River near Andrijevica.

Habitat analyses have identified 14 habitats of the NATURA 2000 network, which are of greater importance, as well as orchards that occur in the villages from Kralja to Sitna Luka. All examined habitats are included in Resolution 4 (and the Annex I of the Habitat Directive). None is considered are an IUCN EN or CR ecosystem. Therefore, all habitats are determined as PBF, while no habitat is characterized as critical according to non-EU states criteria. However, it is noted that the habitat 91E0 -Alluvial forests with Alnus glutinosa and Fraxinus excelsior is priority habitat type, according to the Habitat Directive. Based on the above, the PR6 requirements apply for all the habitats in the area.

The ESIA already included a broad range of biodiversity impact mitigation measures, which have been subject of consultation with the regulatory authorities and CSO's as part of the ESIA disclosure process.

The ESIA included social mitigation measures to respond to impacts associated with the construction workforce, including adherence to HR policies in line with PR2, a Recruitment Plan to maximise hiring near the project and a Code of Conduct to minimise disruption to local communities, which includes aspects that help identify and reduce the potential for gender-based violence and harassment. A Project-level workers' grievance mechanism will aim to cover all direct contractors and subcontractors.

General risks associated with road construction will be managed through the development of a Community Health & Safety Plan, Emergency Preparedness and Response Plan, Infrastructure and Utilities Management Plan and construction Traffic Management Plan.

The Project and its ancillary infrastructure are associated with physical displacement of people and structures. The change physical displacement impacts ten structures (four for permanent residence and six for seasonal use). Physical displacement shall be further investigated during the detailed design to apply commensurate technical protection measures in consultation with the project affected persons (PAPs) or expropriated at the owners' request. To mitigate these risks, a standalone Land Acquisition and Resettlement Framework (LARF) has been developed commensurate to the magnitude and scale of impacts stemming from the project land and resettlement needs. The LARF will be further developed into an actionable and public Land Acquisition and Resettlement Plan that aims to demonstrate compliance with PR5 and completed prior to any construction works taking place. The Bank will monitor the implementation of this, through appointment of a Lender Environmental and Social Adviser (LESA).

No cultural heritage impacts have been identified during the ESIA, but the risk of any impacts on undiscovered cultural heritage from construction will be managed with a chance finds procedure.
A Stakeholder Engagement Plan (SEP) has been developed for the Project, which describes the completed and planned stakeholder consultation activities, as well as a community grievance mechanism to ensure that any concerns and complaints are documented and reported.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

EUR 200,000,000 sovereign loan to be provided in two tranches.

The Project is expected to be co-financed, EU investment grant and the Government of Montenegro Budget.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The borrower is Montenegro represented by the Ministry of Finance. The client is Monteput, who will be implementing the Project in cooperation with the Ministry of Transport who has overall responsibility for the transport policy and strategy in the country.

Monteput is a government organization responsible for managing and maintaining highways in Montenegro.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Monteput D.o.o. Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Gligor Boskovic
gligor.boskovic@monteput.me
+382 68 822 464
www.monteput.me
Avda Medjedovica 130 81000 Podgorica Montenegro

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

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