Montenegro is preparing for a significant investment cycle, which will involve the construction of 260 kilometers of highways and 220 kilometers of express roads, Prime Minister Milojko Spajić announced recently. This initiative is part of a three-phase development plan that the government intends to implement.
The total projected cost for the road infrastructure is estimated at 8.05 billion euros. According to a presentation shared by Spajić during a recent press conference, 4.335 billion euros will be allocated for the highway construction, while 3.715 billion euros will be dedicated to express roads.
Spajić outlined that the development of the planned road network will involve 54 steps. Some segments of the project are expected to be completed by the end of this year, with the remainder set to be finished by the end of 2025 and 2026.
“While many politicians have promised improvements to transportation infrastructure in the past, it wasn’t until the establishment of the 44th Government that concrete plans were developed. Completing these projects will require five to seven years, which is typical for such large-scale undertakings. By 2030, most of these projects should be completed. This level of investment in Montenegro is unprecedented in Europe since the 1960s and 1970s,” Spajić noted.
He also mentioned that the estimated costs are preliminary and that the final expenses for the 480 kilometers of highways and express roads will be clarified once all 18 design proposals are finalized. This will determine how the new road network will link the southern and northern regions, as well as the eastern and western parts of the country.
Economic analyst Mirza Mulešković highlighted the importance of understanding how the incurred debt will be managed.
“Investing in infrastructure is generally beneficial, but it’s crucial to have a clear plan for repaying the debt. Some of the funding will come from grants, but a significant portion will involve borrowing. Montenegro needs to repay one billion euros next year, which will increase the existing debt. It is expected that the government will need to borrow further to fund road infrastructure,” Mulešković explained.
He emphasized that without strengthening the economy, managing these long-term infrastructure investments will be challenging, as they may not provide immediate financial returns.
“It’s vital to maintain the country’s liquidity. In the past four years, Montenegro has borrowed two billion euros, and next year will require additional borrowing to cover old debts,” Mulešković added.
