The loan amount will be used to upgrade the road section between Danilovgrad and Podgorica, the country's two main cities. Credit: European Bank for Reconstruction and Development.

The European Bank for Reconstruction and Development (EBRD) has provided a loan to Montenegro to boost connectivity between Danilovgrad and Podgorica.

The €15m loan amount will be used to rebuild and improve roads between the country’s two main cities.

This move is part of the €40m loan being given to the country’s transport administration, which is being used to fund the reconstruction of 216km of main roads.

Expected to improve regional integration in the Western Balkans, the loan was awarded to the Ministry of Transport and Maritime Affairs in 2017.

Improvements in Montenegro’s transport infrastructure aim to boost investment, economic growth and tourism in the area.

Work includes adopting various climate resilience measures such as special bridge designs, as well as better drainage capacity and road embankments. These measures are aimed at lowering the risk of erosion, landslides and floods.

Headquartered in Italy, the Central European Initiative (CEI) delivered technical support for the work.

EBRD has backed more than 63 Montenegro projects to date. Last year, European Investment bank (EIB) provided a €40m loan to the Government of Montenegro to rehabilitate and upgrade five main roads with a total length of around 180km.

It is said to be the first ERI grant awarded to a project in the Western Balkans under the Economic Resilience Initiative (ERI).

Earlier this month, EBRD provided a €259m loan to upgrade transport infrastructure in Belarus.

Last year, EBRD invested more than €700m for the period 2018-2020 to improve road infrastructure in Bosnia and Herzegovina.