EIB Signs €75.5 Million Agreement for Railway Reconstruction in Montenegro

EIB Vice-President Kyriacos Kakouris underscored the significance of the project, emphasizing its alignment with regional integration priorities in the Western Balkans.

In a significant step towards enhancing transportation infrastructure, the European Investment Bank (EIB) Global has inked a €75.5 million financial agreement for the reconstruction of a crucial 167 km railway section in Montenegro.

Amidst the presence of high-level government officials and representatives from the European Union, the European Investment Bank (EIB) Global has finalized a €75.5 million financial deal for the reconstruction of a vital 167 km railway stretch connecting Bar, Podgorica, and Vrbnica. This transformative initiative, facilitated under the Team Europe initiative, aims to bolster rail capacity, efficiency, and safety along the extended Trans-European Transport Network (TEN-T), thereby benefiting over 1 million passengers annually and facilitating international freight traffic.

The financial package, comprising a €40 million EIB loan and two grants totaling €35.5 million, will be channeled through the Western Balkans Investment Framework (WBIF), with the Government of Montenegro contributing €4.5 million from its own resources. Notably, technical support for project preparation, supervision, and implementation also forms an integral part of the agreements signed at the ceremony held in Podgorica.

EIB Vice-President Kyriacos Kakouris underscored the significance of the project, emphasizing its alignment with regional integration priorities in the Western Balkans. Kakouris highlighted the EIB's commitment to fostering better and faster connectivity within the region and with the European Union, thereby expanding multimodal transport options and promoting a cleaner environment.

Minister of Finance of Montenegro Novica Vuković echoed these sentiments, emphasizing the collaborative efforts between the Government of Montenegro and the EIB to enhance infrastructure and accelerate economic growth. He outlined the comprehensive financial support from the EIB and the European Union through the WBIF, underscoring their commitment to strengthening and improving railway infrastructure in Montenegro.

The project entails the rehabilitation of a 20 km single-track rail section between Lutovo and Bioče, alongside the reconstruction of 13 steel bridges and eight tunnels, totaling approximately 2.6 km in length. Additionally, rolling stock workshops and depots located in Podgorica, Bar, and Nikšić will undergo modernization as part of the initiative.

Ambassador of the European Union to Montenegro Oana Cristina Popa reiterated the EU's steadfast support for Montenegro's economic prosperity and connectivity with EU Member States. She emphasized the broader implications of EU integration, stressing its role in advancing people's rights, freedoms, and overall well-being.

In parallel, the EIB Global delegation engaged in bilateral meetings with Montenegro's President Jakov Milatović and Prime Minister Milojko Spajić, exploring opportunities for technical advisory support and new sectors to bolster the country's EU accession, climate, and connectivity objectives. With a robust track record of financing 29 projects totaling over €1.1 billion in Montenegro, the EIB reaffirmed its commitment to supporting the country's railway upgrades, underscoring its pivotal role as the largest financier of the railway sector in the Western Balkans.