The government plans to borrow €296m to secure lacking funds and finance the budget. From this sum, €106m will be used to pay off debts and liabilities from the previous period and to finance the capital budget, and €190m will be used for the Bar – Boljare highway construction. The government will obtain funds for financing the highway construction through arrangements with the Chinese Exim Bank or other financial institutions, by issuing bonds, or through bilateral arrangements.
According to the 2018 draft budget, €287.67m is allocated for capital investments. Out of the sum €210m relates to the highway construction. For projects funded through the Transport Directorate and Public Works Directorate €35.2m and €42.5m was proposed respectively.
The draft budget foresees €23m for the reconstruction of regional and major roads. The works are planed on the following sections: Vilusi-Vracenovici, Berane-Petnjica, Pljevlja-Metaljka, Ulcinj-Krute, Berane-Kolasin, Bijelo Polje-Ribarevine, Dinosa-Cijevna-Zatrijebacka, Rogami-Spuz, Debeli Brijeg-Herceg Novi, Vrulja-Miljakovici, Krstac-Ivanova Korita, Cetinje-Njegusi, Niksic-Vilusi, Barski Most-Bijelo Polje, Dobrakovo-Bijelo Polje, Danilovgrad-Podgorica, Rozaje-Spiljani, Tivat-Jaz, Kamenovo-Petrovac, Petrovac-Bar.
The budget stipulates €14m for improving the tourist offer in the ski centres Kolasin 1600, Cmiljaca, Zarski, Hajla, Mojkovac and Durmitor.
The government decided to issue guarantee for a €20m loan arrangement between CGES and German Development Bank for the construction of power transmission infrastructure on the Lustica peninsula, as well as €7m for the Railway Infrastructure from the EIB.
The budget also provides for €85.4m to settle the interest rate liabilities.
