By Gokhan Ergocun

ANKARA

The European Bank for Reconstruction and Development (EBRD) is providing a €20 million ($24.6 million) loan to modernize the Turkish-owned Port of Adria, which handles over 95 percent of Montenegro's maritime freight, the bank announced on Monday.

The EBRD's fund will use to extend to the port, which is a key transport link between Montenegro and the rest of the Balkan Peninsula, the bank said.

The bank stressed: "Its development is paramount to improving cross-border infrastructure and greater regional economic integration."

The port, which is controlled by the U.K.-based Global Ports Holding plc through its wholly owned subsidiary Turkey's Global Liman Isletmeleri A.S. as the majority shareholder, operates container and general cargo terminals in the Port of Bar under a 30-year concession agreement, said the statement.

The EBRD said that, under the agreement, the holding has committed to rehabilitate the pier and the acquisition of port equipment such as new cranes, industrial trucks, and other vehicles for handling cargo containers as well as converting warehouses for storing refrigerated containers.

The EBRD is confident the port will become a success story which will encourage further private investment in transport infrastructure in Montenegro and the wider region, said Sue Barrett, EBRD director for transport.

New hub

The holding hopes to transform its terminals at the Port of Bar into a hub that can be used as a way port by trucks between western Europe and Turkey, the statement said.

"This loan illustrates faith in Montenegro and our industry," Mehmet Kutman, chairman of Global Investment Holding, said, adding:

"This loan will help the Port of Adria to modernize its facilities, install modern equipment, and turn into a strong logistics hub in the eastern Adriatic region."

The bank is a leading institutional investor with investments worth $550 million in over 50 projects in Montenegro, the statement stressed.

The EBRD, founded in 1991, helps businesses with its financial investments, services, and involvement in high-level policy reform.

Turkey's Treasury and the EBRD in January signed a donor fund agreement to support what they called "socially important projects."

"Established in 2004, Global Ports Holding is the world’s largest cruise port operator with an established presence in the Mediterranean, Atlantic and Asia-Pacific regions, including extensive commercial port operations in Turkey and Montenegro," according to its website.