PROJECT

Projects

Environmental & Social Review Summary

Project Number

30009

Company Name

CITY OF PODGORICA

Date ESRS Disclosed

Nov 12, 2010

Country

Montenegro

Region

Europe

Last Updated Date

Apr 26, 2025

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 16, 2010
Signed : Dec 17, 2010
Invested : Dec 22, 2010

Sector

Highway Operations (Includes Toll Roads)

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

The Project is to finance the completion of the Eastern Bypass of Podgorica (the “Project”) i.e. section I and part of section IV of the Bypass. The total cost of the Project is approximately EUR 15 million. The City has already constructed about two thirds of the Bypass over the last 5 years and these sections are already operational. The full Bypass includes four inter-dependent sections with a total length of about 9km and 4-lane dual carriageway profile, two sidewalks, several pedestrian, car and railroad underpasses and a new bridge over the Ribnica River. Approximately 60 % of the affected land is owned by the state, 20 % is private, 18 % is owned by Agro-Complex "13th July" and the remaining 2 % belonged to the military. The EU indentified the urban transit route through Podgorica as the key remaining bottle-neck on the motorway to the Adriatic Sea, and identified the Eastern Bypass as being of regional importance, and provided grant financing for its implementation. The Project is in line with long-standing plans for the development of the Transport sector of Podgorica and will have positive impacts on traffic flow as it will divert traffic away from the commercial and residential center of the City including nine major traffic-light controlled junctions. This should contribute to the reduction of the air pollution and traffic congestion in the city center, reduction in numbers of traffic accidents involving pedestrians and reduction of risks associated with transportation of dangerous goods through urban areas.

Overview of IFC's Scope of Review

The E&S due diligence of the Podgorica Bypass project (the “Project”) involved a pre-appraisal site visit on 13/14th October, appraisal site visit on 26/27th October and desk review of available project documentation. It also included discussions/meetings with (i) City Management, (ii) the representatives of the City agencies in charge of planning and development, including persons responsible for the management of environmental, health and safety (EHS) aspects of the project; (iii) a specialized contractor in charge of project and construction management and supervision of Bypass sections that are currently under construction; and the representative of the EU office in Podgorica, which co-financed one section already completed. Documents reviewed included: (i) The Expropriation Law (2008); (ii) an Environmental Impact Assessment (EIA) completed in 2004 by an international consultant as part of the Montenegro Transport Sector Feasibility Study commissioned by the EU and more recent EIAs for each sections II and IV of the Bypass; iii) blue prints of Bypass Sections I and IV with the layouts of all plots of land and houses that are located on the planned alignment of the sections with names of the owners and area of land to be expropriated, (iv) several examples of willing buyer/willing seller contracts between the City and affected land owners; (v) the City Environmental Management Plan for 2010 – 2014, (vi) expropriation plans for all sections of the Bypass. Due to the fact that economic and physical displacement of households and businesses is necessitated by the Project, IFC commissioned a resettlement audit of the Municipality’s ongoing process of land acquisition and resettlement, the findings of which are incorporated into this review document and the associated Supplemental Action Plan.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

File Name Actions
ESAP_Podgorica_Bypass_30009_Nov11_2010.pdf