The European Investment Bank (EIB) and the Government of Montenegro signed a EUR 76.5 million financial agreement for the reconstruction of Bar–Podgorica–Vrbnica railway line which is part of the extended Trans-European Transport Network (TEN-T).
The agreement was signed by the EIB Global Director for Enlargement and Neighbourhood Lionel Rapaille, Minister of Finance of Montenegro Novica Vuković, Minister of Transport and Maritime Affairs of Montenegro Filip Radulović and EU Ambassador to Montenegro Oana Cristina Popa.
“The credit arrangement is one of several agreements concluded with the EIB aimed at strengthening and improving railway infrastructure in Montenegro. According to this year’s budget law, the EIB, alongside the European Bank for Reconstruction and Development, will finance the reconstruction of the railway on the Bar–Golubovci section. This collaborative effort involves a total investment of up to EUR 113 million, supported by a substantial grant of EUR 112.6 million from the European Union provided through the WBIF,” the Minister of Finance said.
EUR 80 million is the total cost of the assessed project, with the financial package entailing a EUR 40 million EIB loan and two grants totalling EUR 35.5 million, which will be channelled through the Western Balkans Investment Framework (WBIF). The Government of Montenegro is contributing with EUR 4.5 million from its own resources. Technical support for project preparation, supervision and implementation also forms part of the agreements signed in Podgorica.
The loan will support the rehabilitation of a 20 km single-track rail section between Lutovo and Bioče, on the 167 km Bar–Podgorica–Vrbnica railway line, forming part of the indicative Extended Orient/East Mediterranean TEN-T core corridor, indicative extension to the Western Balkans. The project also involves the reconstruction of 13 steel bridges and 8 tunnels (at various locations across the country) with a total length of around 2.6 km, and the modernisation of three rolling stock workshops and depots located in Podgorica, Bar and Nikšić.
The entire project will result in 63 km of upgraded railways and 63 km of rehabilitated overhead contact as well as 3 upgraded electrical structure substations on the entire railway line and 1 rehabilitated electrical structure substation.
“Strong support from the European Union and the EIB in financing railway infrastructure improvements means that Montenegro is on track to creating a transport system that will be compatible with the European Union’s transport system and that can continue to be upgraded so that our country is able to comply with EU railway standards. Railway renovation is an urgent priority if we are to ensure a sufficient level of development in Montenegro and attract passengers and goods flows,” the Minister of Transport said.
In Montenegro, the Route 4 created by the Bar – Vrbnica covers rehabilitation works split into six sections. These include the rehabilitation of 114 km covering the 64 km Kolašin – Podgorica, the 29 km Podgorica – Virpazar sections and the 21 km Virpazar – Bar sections. Along the line rehabilitation work has been completed for 45 km including the 25 km Bijelo Polje – Mojkovac, the 11 km Mojkovac – Trebaljevo and the 9 km Trebaljvo – Kolašin sections.
Bar – Vrbnica is the main railway line of Montenegro’s rail network that carries around 20% of passenger volume and 60% of freight. The line was constructed as part of the railway corridor to Belgrade and opened to traffic in 1976. The line a single-track electrified connection between the port of Bar and the Serbian border at Vrbnica.
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