“Highway is an Imperative, Regardless of the Costs”

London – At the investment forum held at London’s headquarters of the European Bank for Reconstruction and Development yesterday, potential investors have been presented with the project of a highway building in Montenegro.

Prime Minister, Milo Djukanovic stated that the construction of a highway in the northern direction stands as a priority for Montenegro and that there is no alternative to this move.

“This project, although very expensive, stands as an imperative for Montenegro. Regardless of how expensive it would be, it is justified, as it improves the safety of traffic in Montenegro. It is enough to take a look at data on how many lives had been lost at the road through Platije and conclude that there is no alternative to this highway. No matter how expensive it will be, every responsible government would have to engage in its’ realization”, Djukanovic said.

He emphasized that most acceptable option for the government was the partnership between private and publicly owned capital.

“That would, by all means, be a more favorable solution to the loan-financed building. ¬However, even if we would have to do it with the loan, I would still advocate the building to go on”, Djukanovic maintained.

Minister of Transportation, Andrija Lompar said that the great number of companies, which have had experience with private-public partnerships, had been present at the meeting, as well as the representatives of banks and investment forums. In his words, government would have a clearer picture of what the interests of investors might be for the building of the highway towards northern regions once it considers results of a pre-qualifying tender procedure, which would be announced on 16 June. He added that the high cost of the project, as well as an unfavorable terrain, pose limitations to the realization of the project.

Finance Minister, Igor Luksic said that the highway would be, in any model, paid by the taxpayers, but that the most favorable model would be found in the form of private-public partnership.

A representative of Louis Berger consultancy, Daniel Serafimoski said that it would be reasonable to build this road in several phases. In this situation, building of the road between Bar and border to Serbia would cost Euro 2,6 billion, while the building of the entire road, at once, would cost close to two billion.

President of the European Bank for Reconstruction and Development, Jean Lemmier said that this bank was well-acquainted with Montenegrin potentials and that it was familiar with its’ possibilities and limitations, but that a lot could be done, in favorable environment, in the field of large infrastructural projects.

“Montenegro is the place where one needs to be present in the upcoming period, as the investments are going to continue”, Lemmier said during his address to the investors and bankers.

By: Miodrag Babovic