Podgorica, Montenegro (14 December 2014) – Representatives of China’s Communications Construction Company (CCCC) and its subsidiary, China Road and Bridge Corporation (CRBC), made earlier today in Podgorica a project plan presentation of the construction of the Montenegro’s first highway priority section.
The CCCC President Chen Fenjian thanked the Montenegro government, the Chinese embassy and the Export-Import Bank of China for their support in the promotion of the major infrastructural project, underlining that the presentation of the project takes place on the eve of the Belgrade’s meeting of leaders of China and Central and East Europe.
The partnership in constructing the priority part of Montenegro’s north-south highway is another successful example of the cooperation between China and Central and Eastern Europe, and it has obtained great support from the leaders and governments of both China and Montenegro.
The Smokovac-Mateševo part, in Mr Fenjian’s words, as the most difficult section in terms of technique and construction, will be constructed first. The bridge and tunnel components represent 60% of this section and its construction will take 4 years to complete, he stated.
The CCCC and CRBS are committed to the implementation of the project and cooperation with local enterprises in order to construct a green and high quality highway for Montenegro, the CCCC President Chen Fenjian concluded.
”After many years of preparations, signing of two bilateral agreements and adoption of the Law on the Highway in the Parliament of Montenegro, I have the honour, on behalf of the Government of Montenegro, to promote together with our Chinese partners and friends the Bar-Boljare highway project and to announce the start of construction of its priority section Smokovac-Mateševo, ”Prime Minister of Montenegro Milo Đukanović emphasised in his welcoming note.
This is the most important infrastructural project in Montenegro’s history, he stressed, ”representing not only a symbol, but a concrete evidence of the better, wealthier and happier future for Montenegro citizens.”
The highway’s construction, in terms of funding, offers a challenge to Montenegro’s public finance, PM Đukanović underlined, adding that efforts in the coming period will be made towards controlling public expenditure and revenue, and continuing the policy of fiscal consolidation.
”We will clearly define the fiscal space in order not to burden the public finance and future generations through introducing tax increases, creating higher GDP, providing more rational management of public funds, as well as through a good selection of priority capital projects,” the Prime Minister explained.
He reiterated that, together with other major development projects in the sectors of tourism and energy, construction of the highway will give a strong impulse to the acceleration of the country’s economic growth. In that regard, the Prime Minister added:
“The first priority part investment, amounting to more than EUR 800 million, will generate serious investment spending over the next 4-year period, with significant multiplier effects on the overall economy.”
The construction of the Bar-Boljare highway also means a more secure and efficient access to all parts of Montenegro and better linking of the Port of Bar with significant European transport corridors.
However, the construction of the highway is not solely a development issue, as it will decrease appreciably the accident rate, PM Đukanović pointed out.
”It is about transport safety as well, which is critical for a small population and tourist country such as Montenegro. Over the last five years, nearly 500 people were killed and more than11.5 thousand were injured in traffic accidents on the Montenegrin roads. These are figures can leave anyone indifferent, as the human life is priceless,” Prime Minister Đukanovic underscored.
On its session of 4 July 2013, the Montenegro Cabinet selected Chinese companies – the CCCC International (China Communications Construction Company) and the CRBC (China Road and Bridge Corporation) – as best bidders for the construction of the highway’s priority section.
Its construction will cost around EUR 809.6 million or $ 1.1 billion. The Exim Bank’s loan is to provide 85% or EUR 687 million of the total amount, whereas the remaining 15% (EUR 120 million) has to be provided by Montenegro.
The one-billion dollar loan represents practically 10% of the $ 10 billion credit line for 16 countries of Central and South-Eastern Europe announced by China’s ex Prime Minister Wen Jiabao at the Warsaw’s conference on April 2011.
The highway section from Podgorica to Mateševo is 41 km long and will pose an enormous challenge for the project designers and be the most demanding part of the road for its constructors.
It will require the construction of 11 tunnels (around 14 km) and 14 bridges and viaducts (around 4 km). That is why its construction cost will be the highest.
Impressive construction achievements, such as Moračica bridge and Vjeternik tunnel, will be fine examples of modern infrastructure in the region and beyond.
As one of the world’s top 500 enterprises, China Communications Construction Co., Ltd. focuses its activities on roads, bridges, ports, channels, railways, tunnels and municipal infrastructure construction, as well as real estate development business, in more than 100 countries and regions around the world. It ranks number nine among the ENR Top 250 International Contractors and regularly creates top-ranking projects in the world, representing not only China’s highest level of infrastructure construction, but also the top in the world.
Source: Government of Montenegro