Construction of Bar - Boljare Highway: Feasibility Study with Cost-Benefit Analysis

Bar – Boljare Highway (BBH) is part of the indicative extension of the TEN-T Core Network to the Western Balkans on Orient/East-Med Corridor. It is a strategic project for South-East Europe (SEE) and Western Balkans, which will interconnect Montenegro with Serbia by constructing a 170 km highway in Montenegro as part of Belgrade – Bar Highway.

Crossing Montenegro, BBH connects areas with varying levels of transport infrastructure. The existing road Bar – Podgorica – Kolasin – Barski Most is an important traffic route in Montenegro. Stretching between the country’s borders, it integrates spatial and functional units – settlements, natural and economic resources serviced by a transport network built more than 50 years ago. The total length of the existing route is ca. 180 km. Most of the route (about 75%) is mountainous, while the sections north of Podgorica are in very complex environments. The latter include several transport facilities and cannot be upgraded to highway standards due to the configuration of the terrain.

The purpose of this assignment was to facilitate road infrastructure investments in Bar – Boljare region and integrate the Western Balkan countries among themselves and with the EU through the development of regional infrastructure.

The overall objective was to prepare the Feasibility Study (FS) with Cost-Benefit Analysis (CBA) for the construction of BBH.

The specific objectives included the following:

Newly developed traffic model for BBH Traffic Forecasting Study and analysis of traffic flows on BBH;
Identification and description of alternatives for BBH;
Traffic forecasts and assignments for options for BBH;
Assessment of environmental and social constraints for considered alternatives based on the baseline information for options for BBH;
Option analysis and selection of the preferred option for BBH based on multicriteria decision analysis;
Conceptual Design including technical specifications, costs, and tolls for the preferred option for BBH;
Financial and economic analysis with CBA and PPP assessment of the preferred option, including detailed analysis of the sustainability of the results, institutional and management of the Project;
Draft financing proposal from the Beneficiary’s point of view;
Detailed analysis of the Regional Development Potential on two tiers – national (Single Project Pipeline) and regional (Connectivity Agenda);
Comprehensive plan including indicators for project objectives, results and activities, resources, institutional structure for project implementation, responsibilities of various bodies, project timing/phasing, estimated costs, and logical framework;
Preliminary Environmental and Social Impact Assessment (ESIA) including outline of Environmental Management Plan (EMP); Land Acquisition and Resettlement Framework (LARF), and preliminary Stakeholder Engagement Plan (SEP)