EU Backs €175.6m Rail Upgrade to Modernise Montenegro’s Bar–Golubovci Line

The Bar–Golubovci section forms part of the strategic Belgrade–Bar railway corridor, which connects Serbia’s capital with the Adriatic Port of Bar.

The European Union has stepped up its support for regional connectivity in the Western Balkans by approving a €175.6 million financial package for the reconstruction of a 39-kilometre stretch of the Bar–Golubovci railway line in Montenegro. The project covers a critical section of Rail Route 4 on the extended Trans-European Transport Network (TEN-T) Core Network, strengthening links between Montenegro, neighbouring Western Balkan countries and Central Europe.

The Bar–Golubovci section forms part of the strategic Belgrade–Bar railway corridor, which connects Serbia’s capital with the Adriatic Port of Bar. This corridor plays a vital role in facilitating trade, tourism and passenger mobility, providing landlocked Central European markets with access to the sea while enhancing Montenegro’s position as a regional transport hub.

Once reconstruction is completed, the upgraded line will allow higher train speeds and deliver significant improvements in reliability, safety and overall capacity. The modernised infrastructure is expected to accommodate around 1.3 million passengers annually and enable the transport of approximately 1.85 million tonnes of freight each year. These upgrades will not only enhance the quality of rail services but also make rail a more attractive alternative to road transport.

The financial package combines a €63 million loan from the European Investment Bank (EIB) with a €112.6 million grant from the European Commission, channelled through the Western Balkans Investment Framework. The total project cost is estimated at €230.8 million and will be further supported by a €50 million loan from the European Bank for Reconstruction and Development (EBRD) and €5.2 million in national funding from the Government of Montenegro.

According to EIB Vice-President Robert de Groot, the investment represents a concrete step towards aligning Montenegro’s transport infrastructure with European Union standards. He noted that, with the latest agreements, EIB Global’s total support for Montenegro’s transport sector will reach around €500 million, contributing directly to stronger regional connectivity, increased trade and tourism, and the development of a more integrated common regional market.

Montenegro’s Finance Minister Novica Vuković highlighted that the €63 million EIB loan provides a stable and favourable financing source for one of the country’s most important railway projects. He stressed that the arrangement is fully aligned with Montenegro’s medium-term fiscal framework and public debt management strategy, while enabling a project of major developmental and European significance. The agreement, he added, reflects continued confidence in Montenegro’s fiscal stability and its capacity to manage large-scale infrastructure investments responsibly.

Beyond transport efficiency, the project also supports Montenegro’s green transition. By shifting both passenger and freight traffic from road to rail, the upgraded line is expected to reduce greenhouse gas emissions, improve energy efficiency and strengthen resilience to climate change. The investment will also promote multimodal transport by improving links between rail, road and maritime transport through the Port of Bar.

The European Commission and the EIB’s advisory programme JASPERS provided technical assistance to ensure that the project meets EU environmental, social and technical standards. This support helped prepare the reconstruction in line with best European practices, ensuring long-term sustainability and compliance with EU regulations.

EU Ambassador to Montenegro Johann Sattler described the investment as a cornerstone of Montenegro’s European future, underlining that modern and sustainable infrastructure is essential for greener transport, better connectivity and deeper economic integration with both the region and the EU. He noted that this is one of the largest single EU grants provided to Montenegro and marks the long-awaited start of the Bar–Golubovci railway reconstruction.

Montenegrin Minister of Transport Maja Vukićević also emphasised the strategic importance of the project, calling it one of the most significant investments in the country’s railway infrastructure in decades. She said the modernisation of the Bar–Belgrade corridor is crucial for sustainable transport development and for strengthening Montenegro’s role as a key link between the Western Balkans and the European Union. The upgrade, she added, directly supports Montenegro’s economic development, green transition and EU accession ambitions.