Montenegro Paving the Way to Europe with EBRD Highway Investment
In a significant stride towards strengthening regional cohesion and advancing European integration, Montenegro has secured a powerful financial boost to extend the Bar-Boljare highway. The initiative, backed by a substantial sovereign loan from the European Bank for Reconstruction and Development (EBRD) and a generous grant from the European Union (EU), aims to stitch together the country’s disparate regions while opening new gateways to neighbouring markets and the heart of Europe.
The spotlight is firmly on the Matesevo-Andrijevica section – a 22-kilometre stretch threading through Montenegro’s rugged northern terrain. While it may seem like just another highway project on the surface, this endeavour carries a weighty promise of connectivity, investment, and opportunity for one of the Western Balkans’ smallest yet strategically placed nations.
Financing the Future
At the heart of this bold infrastructure leap lies the project finance investment package worth over €350 million. The EBRD has committed up to €200 million in sovereign loans, while the EU has stepped forward with a co-financing investment grant totalling €150 million. The first €100 million tranche of the grant is already secured, with the remaining €50 million slated for formalisation by the end of 2025.
This financial architecture is not built on a whim. In fact, it stands on the shoulders of rigorous planning, including a €4.7 million feasibility study and preliminary design support previously granted under the Western Balkans Investment Framework (WBIF).
The EU’s support isn’t a flash in the pan either. As part of the Instrument for Pre-Accession Assistance (IPA), Brussels has provided over €350 million in non-repayable funds for transport development in Montenegro over the years, including €110 million towards rehabilitating the southern stretch of the Bar-Golubovci railway line, running parallel to the highway corridor.
Bridging the Divide
More than just tarmac and traffic signs, this highway is a linchpin in Montenegro’s economic blueprint. Once completed, the Bar-Boljare highway will link the Adriatic coast’s bustling Port of Bar with the Serbian border, forming a key artery of the Trans-European Transport Network (TEN-T).
Crucially, the Matesevo-Andrijevica section will plug a significant gap between Montenegro’s central and northern regions. The latter, long plagued by underdevelopment and high emigration, stands to benefit enormously from improved mobility, safer roads, and increased access to markets, healthcare, education, and jobs.
The impact goes beyond national borders. This project is expected to:
- Improve regional integration with Serbia and other Balkan countries
- Enhance road safety and reduce traffic-related fatalities
- Attract foreign direct investment to neglected areas
- Create jobs during construction and maintenance phases
Monteput, the state-owned highways agency, is tasked with bringing the vision to life, overseeing the detailed design, construction works, and supervision services.
Voices from the Ground
EBRD Regional Director for the Western Balkans, Matteo Colangeli, captured the magnitude of the project: “Modern and reliable transport infrastructure is essential for Montenegro’s economic development, especially in boosting tourism, trade, and regional integration. The Bar–Boljare Highway is more than just a road—it’s a strategic investment that will improve connectivity across the country’s challenging terrain, link the Adriatic coast with inland regions and neighbouring countries, and unlock the economic potential of northern Montenegro.”
Johann Sattler, EU Ambassador to Montenegro, echoed the sentiment: “Modern and reliable infrastructure is one of the foundations for sustainable economic development, connectivity, and European integration. The EU is therefore pleased to invest €150 million for the development of the Bar Boljare highway. This is a clear message of support to economic development, connectivity, and road safety.”
Montenegro’s Finance Minister, Novica Vuković, underlined the long-term strategic thinking behind the investment: “The agreements we are signing today are the result of carefully conducted negotiations and a strong partnership with the EBRD and the EU… This is not just an investment in infrastructure – it is an investment in connecting Montenegro with the region and the European Union, in promoting balanced regional development, and in improving the quality of life for our citizens.”
Prime Minister Milojko Spajić offered a more symbolic reflection: “This section is not just a road – it is a symbol of our joint work with the European Union. A grant of €150 million speaks more than a thousand words and is an undeniable sign of trust in Montenegro.”
Europe’s Broader Vision for the Western Balkans
This highway isn’t happening in isolation. It’s part of a grander scheme to pull the Western Balkans closer to the EU’s political and economic orbit. The Trans-European Transport Networks (TEN-T) aim to bring neighbouring countries in line with core EU infrastructure standards, reducing logistical bottlenecks and fostering sustainable development.
The EU’s commitment to the region is substantial. Beyond Montenegro, the bloc has invested in railway overhauls, port modernisation, and intermodal hubs throughout the Western Balkans. As part of the Team Europe initiative, it is working hand in glove with multilateral development banks such as the EBRD and European Investment Bank (EIB) to maximise funding impact.
With a total transport-focused allocation of approximately €988 million for Montenegro, this highway serves as a flagship project. It’s designed to ripple benefits throughout the region—economically, environmentally, and socially.
Greener Roads Ahead
Road construction has long drawn scrutiny over environmental impacts, but the EU is keen to push sustainability to the forefront. Its broader policy objective is to encourage greener, safer, and more efficient transport modes, reducing greenhouse gas emissions and mitigating climate change risks.
Rehabilitation of railway infrastructure, such as the Bar-Golubovci line, is already underway to shift freight away from roads. When combined with safer and more efficient highways, the strategy aims to create a balanced and sustainable transport ecosystem.
In this context, the Bar-Boljare highway is being built with rigorous environmental standards and modern road safety features, aligned with EU norms.
Building Momentum for Growth
For Montenegro, this project is as much about political symbolism as it is about concrete and steel. It demonstrates the country’s readiness to meet EU expectations, leverage multilateral partnerships, and unlock long-term growth potential.
And for the people of northern Montenegro, it’s a sign of inclusion – a pledge that they are not being left behind in the country’s European journey.
As the machinery revs up and construction begins, the Bar-Boljare highway is set to become more than a connection between places. It’s a pathway to prosperity, unity, and a greener future.
