The loan agreement for the construction of the priority section of the Bar-Boljare highway will be signed tomorrow in Podgorica with representatives of the Chinese Exim Bank.
The contract with the Chinese Exim Bank will be signed by the Minister of Finance, Radoje Žugić.
In September, Exim Bank granted Montenegro a loan of around 687 million euros for the construction of the section of the highway from Smokovac to Mateševo, which is 85 percent of the necessary amount. The remaining 120 million, out of a total of 809,58 million euros, will be provided by the state. The loan was approved for 20 years, with a grace period of five or six years, with an interest rate of up to two percent. The Bank of China, as previously announced by the Government, does not ask for loan guarantees.
In July of last year, the government accepted the offer of the Chinese Telecommunications and Infrastructure Company (CCCC) and its subsidiary China Road and Bridge Corporation (CRBC) for the construction of the first section of the Bar-Boljara highway from Smokovac to Mateševo. Those companies offered to build the priority section of the highway from Smokovac to Mateševo for 809,58 million euros.
The Framework Agreement and Contract on construction, design and procurement and installation of equipment and materials for the Bar-Boljare highway, i.e. the priority section from Smokovac to Mateševo, was signed at the end of February. That's when negotiations with Exim Bank began regarding the financial viability of the project. The budget for this year foresees that Montenegro can borrow 100 million euros, 2016 million euros in the following year and 250, and 2017 million in 209.
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