European Union to invest €175 million to upgrade Bar-Golubovci railway line
To strengthen regional connectivity and integration, the European Union is providing a €175.6 million financial package for the reconstruction of 39 km of the Bar–Golubovci railway line, a key section of Rail Route 4 on the extended TEN-T Core Network. This vital corridor connects Belgrade to the Port of Bar, linking Montenegro and the Western Balkans with Central Europe. 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.
This package includes a €112.6 million contribution from the European Commission under the Western Balkans Investment Framework and a €63 million loan from the European Investment Bank (EIB), a landmark investment that underscores the EU’s strong commitment to Montenegro. 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 investment is another tangible step toward aligning Montenegro’s core infrastructure with EU standards and accelerating the country’s path toward accession”, said EIB Vice-President Robert de Groot. “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.”
“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”, said Finance Minister Novica Vuković.
The European Commission and the EIB advisory programme JASPERS provided technical support that ensured the project was prepared in line with EU environmental, social, and technical standards.
“Modern, sustainable infrastructure is at the heart of Montenegro’s European future. By investing in railways, we are investing in greener transport, better connectivity, and stronger economic integration with the region and the EU. With one of the biggest single grants from EU taxpayers, and the help of our partners, it is finally time to start long-awaited reconstruction of the Bar–Golubovci railway,” said EU Ambassador to Montenegro Johann Sattler.
“This project represents one of the most important investments in Montenegro’s railway infrastructure in decades and a clear signal of trust from our European partners”, said Montenegrin Minister of Transport Maja Vukićević. “By upgrading the Bar–Golubovci section, we are not only improving safety, efficiency, and service quality, but also strengthening Montenegro’s role as a key transport hub between the Western Balkans and the European Union. This investment directly supports our green transition, economic development, and EU accession goals.”
More details about the project here
About WBIF and Global Gateway
The Western Balkans Investment Framework (WBIF) contributes directly to Global Gateway, the EU’s strategy to boost smart, clean and secure connections in digital, energy and transport, while strengthening health, education and research systems worldwide. Global Gateway aims to mobilise up to €300 billion worldwide in investments through a Team Europe approach, bringing together the EU, its Member States and financial institutions to leverage investments for a transformational impact.