Belgrade–Bar motorway

Montenegrin Government and CRBC officials at the Bar Boljare highway first phase opening ceremony. Photo: Government of Montenegro

According to a government report published on Wednesday outgoing Finance Minister Aleksandar Damjanovic and CRBC official Hei Shiquiang met on July 3 about potential cooperation on the construction of the second and third phases of the highway.

The first phase of the Montenegrin Bar-Boljare highway. Photo: Government of Montenegro

On July 13, Prime Minister Dritan Abazovic opened the first section of the highway, seven years after the Chinese-financed project started, and drove up Montenegro's public debt to 90.85 per cent of GDP.

Montenegrin officials at the opening of Bar-Boljare highway first section. Photo: Government of Montenegro.

On Wednesday, Prime Minister Dritan Abazovic opened the first section of the highway, seven years after the Chinese-financed project started and drove up Montenegro's public debt to 90.85 per cent of GDP.

The first stretch of the Bar-Boljare highway in Montenegro. Photo: Government of Montenegro

According to a feasibility study by URS Infrastructure and Environment, a British engineering consultancy, the first phase of the highway should cost $803 million euros, while a study by another British consultancy, Scott Wilson Group, said it should cost $570 million.

The first phase of Bar Boljare highway in Montenegro. Photo: Government of Montenegro

The Chinese loan for the first phase of Bar-Boljare highway has imposed a heavy burden on Montenegro's public finances.

Minister of Finance and Social Care Milojko Spajic said an arrangement was made with two unnamed US banks and one from France, converting the loan from US dollars to euros.

Construction workers on the first phase of Bar-Boljare highway, Montenegro. Photo: Government of Montenegro

Spajic explained that the government was looking for ways to finance its largest infrastructure project under more favourable conditions.

With the first section of the Bar-Boljare highway through Montenegro due to open at the end of 2020, funding for the rest of the Chinese-built road is looking doubtful due to the country's mounting debts and the global economic fallout from the COVID-19 pandemic, analysts warn.

BELGRADE - Serbian President Aleksandar Vucic met with Montenegrin Parliament Speaker Ivan Brajovic Friday to discuss bilateral relations, matters crucial for the citizens of the two countries and European integration.

A Serbian delegation that will travel to China will sign several agreements, including on the Preljina-Pozega and Pozega-Boljare sections of Corridor 11.

Prime Minister Aleksandar Vucic previously said he was considering granting a concession for this part of the future highway to Montenegro to the Chinese, adding, however, that he would be "very sad to do that."

The Montenegrin government decided on Thursday to increase fuel prices to help repay a loan of almost 700 million euro for the construction of the Bar-Boljare highway. 

All types of fuel will rise by up to seven euro cents per litre but the government's statement did not specify when this would happen.