Construction of Matesevo-Andrijevica Section

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a tranched sovereign loan in the amount of up to €200 million to the state of Montenegro (the "Borrower"), represented by the Ministry of Finance, for the benefit of Monteput (the "Company", or the "Client"), 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"). 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").

Project ID 55511

Status Passed Final Review, Pending Approval

Location

Montenegro

Business Sector

Transport

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

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

Project ID 55511

Status Passed Final Review, Pending Approval

Location

Montenegro

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

23 Jul 2025

Disclosure date

06 Mar 2025

Project Description

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").

Project Objectives

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.

Transition Impact

ETI score:66

expected transition impact of the Project is derived from: (i) the Integrated quality through the facilitation of Montenegro's internal and regional integration by improving the country's key transport infrastructure highway connection between central and northern regions; and (ii) the Well-Governed quality through support for a range of objectives including a review of the overall financial governance of the sector, efficiency and corporate governance of Monteput, addressing outstanding objectives of the Transport Community Treaty Action Plan and piloting the application of the Blue Dot Network ESG framework within Montenegro.

Client Information

MONTENEGRO SOVEREIGN

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.

EBRD Finance Summary

EUR 200,000,000.00

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

Total Project Cost

EUR 596,000,000.00

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

Additionality

The Bank's additionality is derived from (i) providing financing that is not available on the market from commercial sources on reasonable terms and conditions; (ii) supporting the ongoing sector reform and the introduction of best international practices; and, (iii) providing best international procurement practices as the procurement will be carried out in accordance with the EBRD Procurement Policies and Rules ("PP&Rs").

Environmental and Social Summary

Categorised A (ESP 2019). The Project requires an Environmental and Social Impact Assessment (ESIA) performed by an independent consultant in line with EBRD's Environmental and Social Policy (ESP) and 120 days disclosure prior to the Board consideration. An ESIA package for Mateševo - Andrijevica highway project will be disclosed on EBRD's and the Sponsor's websites in March 2025. As part of the National EIA procedure, EIA disclosure meetings were conducted in the Project region with the local communities during July-September 2024. Additional in-person public consultations will be undertaken during the disclosure period.
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. This issue has been addressed as part of the Environmental and Social Action Plan (ESAP) implementation. A grievance mechanism has been agreed with the Client in order to address complaints. A Consultation Report will be prepared and publicly disclosed at the end of the disclosure period to summarise stakeholder concerns and associated responses.
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 Kraštica 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.
As part of the ESIA, a Critical Habitat Assessment (CHA) was undertaken. 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 ESAP requires for these mitigation measures to be further strengthened in an extended Biodiversity Management Plan ("BMP") which will be publicly disclosed.
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.
The Bank will be monitoring the implementation of the Project and ESAP through bi-annual Environmental and Social Reporting and independent Lenders Technical Advisor's regular site visits during the Project implementation.

Technical Cooperation and Grant Financing

Pre-signing Technical Cooperation ("TC") support for this operation was provided for: (i) Preliminary Design and ESIA (funded by the Western Balkan Investment Framework ("WBIF")), (ii) Feasibility Study for Bar - Boljare Highway (funded by WBIF), (iii) Update of the Feasibility Study (funded by WBIF ), and, (iv) ESIA finalization, including climate resilience, road safety audit, Paris alignment and GET confirmation. Post-signing TC will also be provided for: (i) Project Implementation Unit ("PIU") support for tender preparation and, (ii) Institutional support.

Company Contact Information

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

PSD Last Updated

11 Mar 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project description

The Bank’s loan will be used to finance construction of the 22km long Matesevo - Andrijevica section of the Bar-Boljare Highway (Route 4 of the Core TEN-T Network extension in the Western Balkans), including the 3.6km Tresnjevik tunnel, 21 bridges (total length 4.8 km), the Andrijevica interchange, and other O&M facilities.

The Project will be co-financed with an EU grant of EUR 150 million under the Instrument for Pre-accession Assistance (IPA III).

ESIA disclosure package

1. ESIA Summary Page (agreed with client);
2. Environmental and Social Impact Assessment (ESIA) in English, and Montenegrin, including Environmental and Social Management Plan (“ESMP”);
3. Non-Technical Summary (“NTS”) in English, and Montenegrin;
4. Stakeholder Engagement Plan (“SEP”) in English, and Montenegrin;
5. Environmental and Social Action Plan (“ESAP”) in English, and Montenegin.

Download package in English

Download package in Montenegrin

Full ESIA availability

Full ESIA documentation is available locally at:

1) Monteput HQ in Podgorica;
2) EBRD Podgorica Resident Office. Moskovska 2/b. 81000 Podgorica;
3) EBRD website (www.ebrd.com)
4) The website of Municipalities Andrijevica ( https://opstinaandrijevica.me/)
5) The website of Municipalities Kolašin (http://www.opstinakolasin.me/).
6) In the community offices of the local affected communities - Mjesne zajednice Matesevo, Bare Kraljske, Kralje, Slatina.
7) In the offices of Municipalities Kolašin and Andrijevica

and

Client website

Enquiries

Environmental or social enquiries

Milica Bijelovic
+38267313528
milica.bijelovic@monteput.me
Monteput,
130 Avda Međedovića, Podgorica 81000, Montenegro
Tel. +382 20 684 730

General enquiries

Monteput
130 Avda Međedovića, Podgorica 81000, Montenegro
Tel. +382 20 684 730

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Construction of Matesevo-Andrijevica Section

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries

Environmental or social enquiries

General enquiries