Exim Bank accept to finance highway construction, China’s government expected to give final approval

    Podgorica, Montenegro (19 September 2014) — Montenegro’s finance and transport ministers, Radoje Žugić and Ivan Brajović, met earlier today with representatives of the Chinese Exim Bank, the CRBC and the Poly Technologies.

    The meeting focused on the preparations for the start of the Bar – Boljare highway’s construction and the cooperation regarding the Montenegrin fleet renewal in collaboration with the Poly Technologies for the purposes of Montenegro’s shipping companies, Crnogorska plovidba and Barska plovidba.

    It was concluded that cooperation between Montenegro and China in implementing these projects has been successful and confirmed the both sides’ commitment to its further intensification.

    With regard to the highway’s priority part construction, representatives of the Exim Bank stated the internal procedure of approving the loan arrangement had been completed, that is, the bank had accepted to finance the project, and that the documentation was forwarded to China’s Ministry of Trade for final approval.

    Representatives of the Montenegrin government voiced satisfaction with the Exim Bank’s decision, expecting the Chinese government to give its final approval as quickly as possible. Following that, the Draft Loan Agreement would be forwarded to the Montenegrin side, thus creating preconditions for entering into an arrangement with creditors, the parliamentary procedure and the start of works by the end of 2014.

    These developments testify of successful cooperation and confirms the both sides’ commitment to implementing the major infrastructure project, which will bring many benefits to Montenegro, not only in terms of finance, infrastructure, security and integration, but it will also contribute to the evaluation of its resource wealth and have direct and indirect effects on the country’s GDP, the meeting concluded.

    Regarding cooperation on ships design and construction, representatives of Crnogorska plovidba expressed satisfaction with their cooperation with the Poly Technologies, hoping the project will be successfully implemented, and that the company will be able to pay its obligations to the China’s bank.

    Source: Government of Montenegro