In the presence of high-level government and EU officials, the European Investment Bank (EIB) Global has signed a €75.5 million financial agreement for the reconstruction of a 167 km long railway section between Bar, Podgorica and Vrbnica.
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These infrastructural improvements along the extended Trans-European Transport Network (TEN-T) will improve rail capacity, efficiency and safety, benefiting over 1 million passengers a year and international freight traffic.
The project will also promote a modal shift from road to rail, contributing to a more sustainable transport system in the country.
Facilitated under the Team Europe initiative, a €75.5 million EU financial package (covering 95% of the estimated project cost) is made up of a €40 million EIB loan and two grants totalling €35.5 million, which will be channelled through the Western Balkans Investment Framework (WBIF).
The Government of Montenegro is contributing with €4.5 million from its own resources. Technical support for project preparation, supervision and implementation also forms part of the agreements signed on May 30, at the ceremony held in Podgorica.
The event was attended by the EIB Global Director for Enlargement and Neighbourhood Lionel Rapaille, Minister of Finance of Montenegro Novica Vuković, Minister of Transport and Maritime Affairs of Montenegro Filip Radulović and EU Ambassador to Montenegro Oana Cristina Popa.
The project will involve rehabilitating a 20 km single-track rail section between Lutovo and Bioče, rebuilding 13 steel bridges and eight tunnels (with a total length of around 2.6 km), and modernising rolling stock workshops and depots located in Podgorica, Bar and Nikšić.
As the largest financier of the railway sector in the Western Balkans with €1.9 billion invested, the Bank plans to continue supporting the country’s railway upgrades.
New investments are already in the development phase, such as the reconstruction of the Bar–Golubovci section on Rail Route 4. ■