The European Investment Bank (EIB) Global signed, in the presence of senior officials of the Government and the European Union, a financial contract worth 75,5 million euros for the reconstruction of the 167-kilometer long railway section between Bar, Podgorica and Vrbnica.
The EIB announced that these infrastructural improvements along the extended Trans-European Transport Network (TEN-T) will provide greater efficiency, safety and capacity of the railway network, both for more than a million passengers per year and for 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.
Made possible under the Team Europe initiative, the European Union financial package of 75,5 million euros, which covers 95 percent of the estimated project costs, consists of an EIB loan of 40 million euros and two grants totaling 35,5 million euros provided through the Investment framework for the Western Balkans.
As stated in the announcement, the Government of Montenegro will contribute 4,5 million euros from its own funds. Technical support for the preparation, supervision and implementation of the project is also part of the agreement signed today at a ceremony held in Podgorica.
The event was attended by the director of EIB Global for enlargement and neighborhood Lionel Rapaile, the Minister of Finance Novica Vuković, the Minister of Transport and Maritime Affairs, Filip Radulović and the Ambassador of the European Union to Montenegro Oana Kristina Popa.
The Vice President of the EIB, Kirjakos Kakouris, stated that the upgrading and expansion of the railway transport infrastructure is a priority for both the European Union and the Government of Montenegro, as a key factor in the regional integration of the Western Balkans.
"This project is based on the EIB's previous support for the Bar-Vrbnica section, as the main railway line of Montenegro, but also on our recent investments in strategic railway corridors in Serbia, North Macedonia and Albania, with the aim of providing better and faster connections in the region and the EU. In this way, we are expanding multimodal transport options, contributing to a cleaner environment and improved economic exchange," said Kakouris.
Vuković said that their goal is to encourage the development of a better, more efficient and safer infrastructure in partnership with the EIB, which will ultimately improve connectivity and accelerate the economic growth of Montenegro.
"The credit arrangement signed today is one of several agreements concluded with the EIB, the aim of which is to strengthen and improve the railway infrastructure in Montenegro. According to this year's budget law, the EIB, together with the European Bank for Reconstruction and Development, will finance the reconstruction of the railway on the Bar-Golubovci section. "This cooperation involves an investment of up to 113 million euros, with a significant grant of 112,6 million euros from the European Union, provided through the Investment Framework for the Western Balkans," announced Vuković.
The project includes the rehabilitation of the 20-kilometer single-track section between Lutovo and Bioč, the reconstruction of 13 steel bridges and eight tunnels, with a total length of about 2,6 kilometers, as well as the modernization of workshops and depots for the rolling stock in Podgorica, Bar and Nikšić.
Radulović stated that the Ministry of Transport and Maritime Affairs is recognized as one of the largest beneficiaries of grants in the field of transport from available EU funds, primarily the Investment Framework for the Western Balkans.
"With the strong support of the European Union and the EIB in financing the improvement of railway infrastructure, Montenegro is on a safe path to create a transport system that will be compatible with the transport system of the European Union, with a tendency towards further modernization, so that our country is ready to comply with the EU standards related to railway traffic", said Radulović.
According to him, the reconstruction of the railway is imposed as an urgent need in order to ensure the appropriate level of development of Montenegro, and thus attract naturally determined passenger and goods flows, with the aim that the implementation of the project will contribute to the railway becoming a more attractive mode of transport, which will ultimately have a positive effect on increasing the level of competitiveness - while investing in a green form of transport will bring benefits in environmental protection.
Popa said that today's event is the perfect occasion to remind that the European integration of Montenegro is much more than the process of closing a chapter or bringing laws closer together.
"Essentially, it is about improving human rights and freedoms and enabling a healthy, safe and fulfilling life. The European Union, within the framework of Team Europe, continues to support the economic prosperity and further development of the Montenegrin economy and its connection with EU member states. In addition, our support will help Montenegro to switch to greener and more sustainable modes of transport," said Popa.
During the visit to Podgorica, the delegation of EIB Global met with the President of Montenegro Jakov Milatović and Prime Minister Milojko Spajić.
At the bilateral meetings, the parties discussed further opportunities to expand the scope of activities in terms of technical advice and new sectors to be covered in support of the country's ambitions for EU accession, climate issues and connectivity.
Thanks to the long-term cooperation with Montenegro, the EIB was able to provide financing for 29 projects with over 1,1 billion euros signed to date.
As the largest financier in the railway sector in the Western Balkans with 1,9 billion euros invested, the bank plans to continue supporting the rehabilitation of the country's railways. New investments are already in the development phase, such as the reconstruction of the Bar-Golubovci section on line 4.
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