The Montenegrin government paid some EUR570m to the China Road and Bridge Corporation (CRBC) for the construction of the first section of the Bar-Boljare highway by end-June, the Finance Ministry told the daily Dnevne Novine. The ministry explained that EUR483.63m from the amount came from the Chinese Exim Bank loan and EUR85.34m came from the state budget. The cabinet paid EUR57.29m to the highway developer in H1’19, of which EUR52.30m were allocated from the Chinese Exim Bank loan and EUR4.99m from the state budget. Most of the funds (EUR24.02m) were paid in January.
The total amount of the Chinese Exim Bank loan is EUR688.2m and accounts for 85% of the total amount required for the construction of the highway section (EUR809.6m). The remaining 15% of the funding will come from the state budget. The repayment period of the loan is 20 years with a six-year grace period and an annual interest rate of 2%.