The European Investment Bank (EIB) Global, alongside government officials and European Union representatives, has finalized a financial deal worth €75.5 million for the reconstruction of a 167-kilometer railway section connecting Bar, Podgorica, and Vrbnica.
This initiative, aimed at enhancing the Trans-European Transport Network (TEN-T), promises improved efficiency, safety, and capacity for both passengers and international freight transport, benefiting over a million travelers annually. Additionally, it encourages a shift from road to rail transport, promoting a more sustainable transportation system.
Through the Team Europe initiative, the €75.5 million EU financial package, covering 95% of the project costs, comprises a €40 million EIB loan and two grants totaling €35.5 million provided via the Western Balkans Investment Framework. Montenegro’s Government will contribute €4.5 million from its own funds. Technical support for project preparation and implementation is also part of the agreement.
Attendees at the ceremony included Lionel Rapaille, Director of EIB Global for Enlargement and Neighbourhood, Finance Minister Novica Vukovic, Minister of Transport and Maritime Affairs Filip Radulović, and European Union Ambassador to Montenegro Oana Cristina Popa.
Kyriacos Kakouris, Vice President of the EIB, emphasized the importance of upgrading railway infrastructure for regional integration and economic growth. The project builds upon previous EIB support and aims to provide better connections within the region and the EU, contributing to a cleaner environment and improved economic exchange.
Vuković highlighted the government’s goal to stimulate the development of efficient infrastructure in partnership with the EIB, enhancing Montenegro’s connectivity and economic growth. This agreement is part of several collaborations aimed at strengthening railway infrastructure.
Radulović stressed the urgent need for railway refurbishment to attract passenger and freight flows, making rail transport more attractive and environmentally friendly.
Popa underlined the significance of Montenegro’s European integration and the EU’s support for its economic prosperity and connectivity. The support aims to transition Montenegro to greener and more sustainable transportation modes.
During their visit, the EIB Global delegation discussed further collaboration opportunities with Montenegro’s leadership, focusing on technical consultancy and new sectors to support the country’s EU accession ambitions, climate goals, and connectivity.
With its extensive cooperation history with Montenegro, the EIB has funded 29 projects totaling over €1.1 billion. As the largest financier in the Western Balkans’ railway sector, the bank plans to continue supporting railway rehabilitation, with new investments already underway.
