The 2018 Draft Budget Law allocates €34.9m for the Ministry of Transport, 9.2% more than this year. The increase is due mainly to government obligations to repay the loan taken by Crnogorska Plovidba from the Chinese Exim Bank.
The state-owned shipping company used the funds to buy two ships seven years ago and is not able to pay the instalments. In the past, the government paid the instalments for the Kotor-based company. Since the two instalments are paid annually, the government will have to pay €5.2m in 2018.
The Kotor and 21. Maj ships were purchased from the Chinese Poly Group in 2010. The total value of the loan the government guaranteed for was €47.4m.
The state shipping company Barska Plovidba, however, is meeting its payment obligations to the bank.
The capital budget for 2018 is €287.67m of which €210 will be allocated for the highway.
