Montenegro has set rules for subcontracting on the €693.97 million Mateševo-Andrijevica motorway project, opening a potentially significant construction pipeline for domestic companies while limiting the share of works that can be outsourced.
State motorway company Monteput said domestic firms seeking subcontracting opportunities must be registered in Montenegro and must have been established before Jan. 1, 2023.
The total value of subcontracted works cannot exceed 40% of the accepted contract value.
The main contractor, a consortium led by PowerChina, Stecol and PCCD, is expected where feasible to provide domestic firms with a fair opportunity to participate.
Two subcontractors have already been approved.
Belgrade-based VS Infra Design will work on field investigations and design activities, while Kolašin-based Keker will carry out access-road works.
The project covers about 23 kilometres of motorway between Mateševo and Andrijevica and represents the next major extension of Montenegro’s north-south highway network.
Financing includes a €200 million EBRD loan, an €150 million EU grant and national budget resources.
Preparatory works began in late June, while the main construction phase is expected to start roughly a year later.
The subcontracting framework is economically important because the motorway will be one of Montenegro’s largest construction projects of the decade.
Even a fraction of the contract value could generate substantial revenue for domestic engineering, earthworks, transport, quarrying, concrete, electrical and other construction companies.
A theoretical 40% subcontracting ceiling would represent works worth well above €250 million, although actual domestic participation may be significantly lower and will depend on technical qualifications and the contractor’s procurement decisions.
That makes the local-content question particularly important.
Montenegro has limited capacity in some specialised motorway construction segments, while large international contractors typically retain control over core tunnelling, bridge and project-management functions.
Domestic companies are more likely to compete for access roads, earthworks, logistics, materials supply, smaller structures and supporting infrastructure.
The requirement that qualifying Montenegrin companies must have been registered before 2023 appears intended to prevent the creation of new entities established primarily to gain access to the project.
It could also reduce risks associated with inexperienced subcontractors.
But it narrows the potential bidder pool and increases the importance of transparent selection.
Large infrastructure projects in the Western Balkans have frequently faced criticism over limited domestic participation despite substantial public financing.
Montenegro’s approach attempts to balance local economic benefits with the main contractor’s need to retain responsibility for quality and delivery.
The project itself will be technically demanding.
The northern terrain requires extensive tunnels, bridges and earthworks, which helps explain the high cost per kilometre.
At almost €30 million per kilometre, the project is among Montenegro’s most expensive transport investments.
Its financing structure reduces some pressure on the state budget.
The €150 million EU grant covers a material share of construction costs, while the EBRD loan provides long-term institutional financing.
That differs from the first section of the Bar-Boljare motorway, whose heavy reliance on sovereign borrowing became a major public-debt issue.
The government is under increasing pressure to avoid repeating that model as it develops roads, railways, airports and energy infrastructure simultaneously.
International lenders have also urged Montenegro to maintain public debt around or below 60% of GDP and rely more on grants, IFI loans and private capital where possible.
The Mateševo-Andrijevica structure reflects that shift.
For local businesses, however, the immediate issue is not macro financing but access to contracts.
The motorway could generate several years of activity for Montenegro’s construction sector at a time when tourism, housing and public infrastructure are already stretching labour and contractor capacity.
That could support revenues and employment but also drive wage and material costs higher.
Domestic companies able to secure early positions in the supply chain may benefit significantly.
The next question is how much of the theoretical subcontracting capacity actually reaches Montenegrin firms.
The government has created the framework for local participation.
The economic impact will depend on whether the project becomes a genuine domestic construction pipeline or remains predominantly an externally executed megaproject financed through Montenegro’s public balance sheet.
