Regional Broadband Infrastructure Development

Orient/East-Med Corridor: Montenegro – Serbia R4 Rail Interconnection, Bar – Vrbnica Section

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Project Financing

WBIF Grant WB10-MNE-TRA-01 € 1,000,000
WBIF Grant WB14-MNE-TRA-01 € 3,000,000
WBIF Grant WB13-MNE-TRA-01 € 2,500,000
EIB Loan € 7,000,000
Beneficiary Contribution Own Contribution € 500,000
WBIF Grant WB-IG00-MNE-TRA-01 € 20,000,000
EIB Loan € 20,000,000
EBRD Loan € 15,000,000
WBIF Grant WB16-MNE-TRA-01 € 1,500,000
WBIF Grant WB17-MNE-TRA-01 € 1,920,000
EIB Loan € 7,000,000
WBIF Grant WB-IG03-MNE-TRA-02 € 15,900,000
EU External Grant € 3,000,000
KFW Loan € 24,100,000
WBIF Grant WB21-MNE-TRA-01 € 3,000,000
KFW Loan € 25,000,000
Potential WBIF Investment Grant External Grant € 25,000,000
Total € 175,420,000
Total Grants € 48,820,000
Total Loans € 98,100,000

Project Description

The extension of the Orient/East-Med Corridor into the Western Balkans along Route 4 is approximately 580 km long and runs from Vrsac (Serbia – Romania border) to Belgrade (Serbia) and then to Podgorica and Bar (Montenegro). Bar – Vrbnica (the latter at the Montenegro – Serbia border) is the most important section of the Montenegrin rail network, carrying about 20% of all passengers and about 60% of the cargo. Rail as a whole is an important part of the Montenegrin economy, accounting for almost 60% of all freight and 10% of passenger travel.

The Bar – Vrbnica route opened to traffic in 1976 and since then there has been no major overhaul of the signalling systems nor of the numerous bridges and tunnels located on this route. Montenegro has however commenced planning for the rehabilitation and modernization of the entire railway track since the early 2000s, with assistance from the European Union, the European Investment Bank, and the European Bank for Reconstruction and Development.

The EU, through the WBIF and National IPA, has allocated more than €13 million to the preparation of concrete investment packages as well as urgent rehabilitation works along slopes in danger of landslides. In addition, under the Connectivity Agenda, the EU has allocated more than €20 million to cover 50% of the costs associated with the installation of modern signalling and telecommunication systems in and around Podgorica as well as the rehabilitation of 29 concrete bridges and 20 tunnels. Work on the signalling systems commenced in January 2018 while concrete bridges rehabilitation is currently under tendering.

Links

Works Commence on the Third 2015 Connectivity Project

Visit of Commissioner Johannes Hahn and PM Dusko Markovic to the Railway Reconstruction Project (Video)

  • Countries: Montenegro
  • Code: PRJ-MNE-TRA-004
  • Sector: Transport
  • Monitor IFI: EIB
  • Status: Implementation
  • Beneficiary: Railway Infrastructure of Montenegro JSC
Project financing split

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