MAIN ROADS REHABILITATION PROGRAM

The project includes five road rehabilitation and improvement schemes up to approximately 180 km. It is part of the Montenegro reconstruction programme of the Traffic Directorate of the Ministry of Transport and Maritime Affairs for main roads at over 200 km over a period of three years. The project also includes the reconstruction and rehabilitation of several bridges and tunnels and the construction of climbing lanes and a boulevard. It aims at improving transport conditions, including level of service and safety.

The project is expected to promote regional and national economic growth, facilitate trade, support private sector development, and ultimately contribute to economic and social cohesion in the region. The project is in accordance and pursuing the objectives of the Pre-Accession support and support for EU External Policies in the Neighbourhood/Partnership Countries. The project is expected to improve connectivity and reinforce the integration between the Western Balkans region and the EU, and strengthen the country's competitiveness in line with the 2017 Transport Community Treaty. The operation shall become part of the Economic Resilience Initiative (ERI), following its endorsement by the European Council and the European Parliament.

The individual schemes of the project are investments of small and medium size for the reconstruction of existing roads. As overall alignments are to be maintained and there is limited construction of climbing lanes, the project is likely to have limited environmental and social impacts. In the situation where these schemes were located in the EU, they would likely fall under Annex II of EIA Directive 2011/92/EU as amended and therefore be subject to screening. Appropriate screening procedures, also in relation to natural habitats and protected species, as well as land acquisition and/or resettlement, will be put in place. An appropriate Resettlement Policy Framework will be developed to address potential physical or economic displacement of affected households.

The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

This operation is covered by the EU Guarantee for EIB loans outside the EU.