Chinese firms win European motorway project: Montenegro12 July 2013
12 July 2013
In a rare example of Chinese firms winning work in Europe, Montenegro has favoured two Chinese construction companies to bid for the priority section of the planned Bar-to-Boljare highway.
Negotiations between the Government of Montenegro and China Communications Construction Company (CCCC) and China Road and Bridge Corporation (CRBC) will move on to agree the final project design, construction and financing, transport minister Ivan Brajović said.
The project, which will link Montenegro to Serbia, will cost $1.05bn. Finance through a preferential loan from the Chinese EXIM Bank is planned. The deal includes a 20-year repayment period, a five-year grace period, and 2% fixed interest rate.
Montenegro and Serbia will be linked by a motorway (Wikimedia)
Minister Brajović said that the construction of the Bar-Boljare motorway will ensure more balanced development of the country, better exploitation of natural resources, more rapid development of tourism, better and safer transport and overall economic development.
The government negotiated with the Turkish Dogus-Guslan consortium, American-Turkish consortium Bechtel-Enka and Chinese CCCC and the CRBC in the last six months.
The financial sustainability of the Chinese offer with regard to criteria set by the government was given as the reason for accepting the bid.
Construction of part of the Bar-Boljare is part of larger project to build a motorway linking Montenegro and Serbia.
Source: Government of Montenegro