Smokovac-Matesevo section might cost Montenegro EUR 1.2 billion

The priority section of the Smokovac-Matesevo highway might cost the citizens of Montenegro EUR 1.2 billion, as the president of the Audit Commission, Mladen Ulicevic, presented items that will not be financed from the contracted price of EUR 809 million and the fact that the preliminary plan for the Smokovac interchange involves populated areas Ras and Stara Zlatica.

The amount of EUR 180 million of additional interest on the loan from China Exim Bank is added to the initial amount, whereas the non-contracted works on the Smokovac interchange, the construction of water and electricity networks, access roads to interchanges Verusa and Matesevo and other items might cost up to EUR 80 million.

Around EUR 5 million, the price of the preparation of various plans, studies, tenders and negotiations with previous potential contractors from 2007 till 2014 is added to the total cost.

Around EUR 20 million has been set aside for the expropriation and related costs, and the sum might increase by roughly another 20 million by the end of the project.

When the Government signed a loan agreement worth USD 944 million with China Exim Bank in October 2014, the euro was worth USD 1.27, and the loan equaled EUR 743 million. Due to foreign exchange differences, the loan is now higher by 60 million, and, at one point in late 2016, it was higher by EUR 160 million due to the drop of the euro.

CRBC Bejing

Vlada Crne Gore

CRBC China

Government of Montenegro

Corridor 11

Smokovac Matesevo highway

Audit Commission of Montenegro

Smokovac interchange

China Exim Bank