Government of Montenegro to invest €90m in construction of Podgorica-Mateševo-Kolašin road, international tender soon

Government of Montenegro will not give up intention of investment of over €90m in construction of Podgorica – Mateševo – Kolašin road, of which construction will last for about three years. The real price of that project will be known after the annunciation of the tender, but it cannot be waited that the complete amount be provided, because it would mean that the works must be postponed. Government thinks that amount of €90m is enough for the commencement of construction of the road, whereas the tenders that waits to be announced will determine further possibilities for financing. It is expected that international financial institutions take part. There are also concession arrangements. Government is of the opinion that Montenegro is able to build one lane of the Podgorica - Mateševo highway, with road connection to Kolašin. International tender will be announced in about ten days.

At the end of May 2005 it can be expected that the contractor will be selected, whereas the start of works on Kolašin - Mateševo highway is expected before the Summer. Prior to October 2005, international tender will be announced. Besides the money earned from the sale of Telekom, construction works will also be financed from privatization of KAP, Podgorička banka, Coal Mine, Steam Power Plant, hotels and other sources. Thus, the recommendations of IMF on spending of budget means will be respected.