The European Bank for Reconstruction and Development (EBRD) has agreed to provide a €40m loan to support the reconstruction of three main roads in Montenegro.

The loan will be provided in three tranches to Montenegro’s Ministry of Transport and Maritime Affairs.

Initially, EBRD will provide €10m, which will be used to redevelop a road section between the towns of Rožaje and the village of Spiljane near the Serbian border.

The second and third tranches of €15m each will be dispensed next year and in 2019 for the modernisation of Podgorica-Danilovgrad and Tivat-Jaz road sections in the south, respectively.

Montenegro Minister of Finance Darko Radunović said: “The investment will facilitate the flow of goods and people, reduce transport costs and increase road safety.”

“The investment will facilitate the flow of goods and people, reduce transport costs and increase road safety.”

Overall, nearly 216km of roads will be reconstructed under the programme, improving regional integration in the Western Balkans.

EBRD Transport director Sue Barrett said: “Some of Montenegro’s main roads are winding through the mountains and some lie next to the sea, which makes them very scenic, but also vulnerable to weather shocks.

“In order to help avoid the risk of erosion, landslides and floods, the EBRD-financed rehabilitation project will include improvements such as increased drainage capacity, reinforced road embankments and special bridge designs.”

To date, EBRD has invested €530m in more than 50 projects in Montenegro.