The European Union is committing €175.6 million to modernise 39 km of the Bar–Golubovci railway link in Montenegro, a strategic section of Rail Route 4 on the extended TEN-T Core Network.
The package includes a €63 million loan from the European Investment Bank (EIB) and a €112.6 million EU grant from the European Commission under the EU’s Western Balkans Investment Framework.
The total project cost, estimated at €230.8 million, will also be supported by a €50 million loan from the European Bank for Reconstruction and Development and €5.2 million from the government of Montenegro.
“This vital corridor connects Belgrade to the Port of Bar, linking Montenegro and the Western Balkans with Central Europe,” said the EIB.
“Once completed, the upgrade will increase train speeds and improve railway reliability, safety, and capacity. The project will raise the quality of rail service, accommodating 1.3 million passengers and transporting 1.85 million tonnes of freight annually.
“It will promote multimodal transport, strengthen resilience to climate change, and advance Montenegro’s green transition by shifting traffic from road to rail.”
EIB Vice-President Robert de Groot said: “This investment is another tangible step toward aligning Montenegro’s core infrastructure with EU standards and accelerating the country’s path toward accession.
“With these latest agreements, EIB Global’s support for the transport sector in Montenegro will reach a total of €500 million, directly improving regional connectivity, boosting trade and tourism, and helping to create a more integrated common regional market.”
Montenegro’s Finance Minister Novica Vuković said: “With the conclusion of the €63 million loan agreement with the European Investment Bank, a stable and favourable source of financing has been secured for one of the key infrastructure projects in the railway sector.
“The loan arrangement is fully aligned with the medium-term fiscal policy framework and the public debt management strategy, while enabling the implementation of a project with strong developmental relevance and European significance.
“Cooperation with the EIB once again confirms the institution’s confidence in Montenegro’s fiscal stability and the country’s capacity to responsibly manage major infrastructure investments.”