Montenegro is set to take a major step forward in completing the Bar–Boljare Motorway with the imminent signing of a €693.97 million design and construction contract for the Mateševo–Andrijevica section, the second of four phases of the A-1 motorway project. The agreement is expected to be formally signed in late February, likely on Friday 27 February, after the Montenegrin government authorises Monteput’s executive director to conclude the deal with the winning bidder, the PowerChina–Stecol–PCCD consortium.
The 22-to-23 kilometre section from Mateševo toward Andrijevica is central to Montenegro’s strategy to complete the north-south motorway linking the Adriatic port of Bar to Bar–Boljare Motorway’s ultimate terminus at the Serbian border. It follows the opening of the first phase from Smokovac to Mateševo, which has already been completed and opened to traffic.
The project’s financing structure blends domestic and international support. A €200 million loan from the European Bank for Reconstruction and Development (EBRD) and a €150 million investment grant from the European Union underpin part of the funding, with the remainder expected from Montenegro’s state budget. This financial model is designed to align with EBRD standards and maximise EU co-financing contributions.
Under the agreed procurement process, three qualified bids were evaluated. The PowerChina–Stecol–PCCD consortium’s offer of €693.97 million was the lowest among compliant technical and financial proposals, edging out bids from the Cengiz–Azvirt consortium at €735 million and China Communications Construction Company at €724.64 million. A fourth bidder’s financial proposal was excluded for failing to meet tender requirements.
Once signed, the contract will pave the way for preparatory and design work to begin this year, with construction scheduled to proceed over the next five years. The Mateševo–Andrijevica section represents a key infrastructure priority for Montenegro, expected to improve regional connectivity, stimulate economic activity in the northern municipalities and strengthen the country’s strategic transport linkages with neighbouring countries.












