Podgorica, (MINA-BUSINESS) – The contract for the design and construction of the Markovici–Lastva Grbaljska section, the first phase of the Budva bypass, was signed today at Vila Gorica. The project is expected to ease the heavy traffic congestion currently affecting the coastal town.

The contract, worth approximately €240 million including VAT, was signed by Executive Director of Monteput Milan Ljiljanic and BRIV Construction Director Milan Maric.

The consortium consists of BRIV Construction, Hering, Herc Gradnja, Shandong, and IPSA Institute Sarajevo. The deadline for completing the design and construction is four years.

Speaking after the signing ceremony, Ljiljanic said the section is technically very demanding and stretches for around nine kilometres, with engineering structures accounting for 70 percent of the route.

“The project includes 4.3 kilometres of tunnels, 1.4 kilometres of bridges, and two interchanges, Markovici and Lastva Grbaljska," Ljiljanic said.

Prime Minister Milojko Spajic, who attended the signing ceremony, said that Montenegro would continue investing in major infrastructure projects.

“This is a very important section that will relieve the heavy traffic congestion we currently have around Budva. The route from Markovici to Lastva Grbaljska is about eight or nine kilometres long and runs through very demanding terrain, with as much as six kilometres consisting of bridges and tunnels,” Spajic said.

Minister of Finance Novica Vukovic said the capital budget provides strong support for the project, which will be financed from domestic funds.

“The contract is worth €196 million excluding VAT, and nearly €240 million including VAT. The project’s successful implementation is certain, and the financial framework has been fully secured, so there should be no problems during execution,” Vukovic said.