The European Bank for Reconstruction and Development (EBRD) is considering a sovereign-guaranteed loan of up to €30 million for Montenegro’s state passenger railway operator ŽPCG to acquire as many as 10 new sleeping cars for international services.
The project remains at the EBRD’s exploratory stage and is subject to final review, with approval scheduled. The financing has not yet been signed. The EBRD values the total project at €30 million and classifies it as 100% Green Economy Transition, reflecting the potential for rail to attract passengers from road and air transport.
New coaches planned for international routes
The proposed sleeping cars would replace ageing rolling stock currently used on international routes and improve interoperability with European railway networks. The investment is particularly relevant to Montenegro’s connections with Serbia and onward services toward central Europe, where overnight trains remain among the country’s long-distance passenger transport options.
ŽPCG is 96.34% state-owned, meaning the proposed sovereign guarantee would represent both a public-finance commitment and a transport investment. The project follows a separate approximately €30 million contract with Stadler for three FLIRT electric trains, signed earlier in 2026. Montenegro is also carrying out significant investment in the rehabilitation of the Bar–Podgorica railway corridor.
Infrastructure remains important for passenger services
The proposed coaches would not be the only factor determining the competitiveness of international passenger rail services. Journey duration, track condition, border procedures and timetable reliability also affect whether travellers select trains instead of cars, buses or airlines. The financing proposal is therefore connected with the wider railway infrastructure programme. New sleeping cars could improve passenger comfort and strengthen overnight services between Montenegro and Serbia, particularly during the summer tourism season.
Their commercial value would depend on whether infrastructure improvements also deliver faster and more reliable journeys. Rail services could provide an alternative for passengers travelling between Serbia and the Montenegrin coast, particularly as road congestion and airport traffic increase.
Sovereign guarantee creates public exposure
The sovereign guarantee would reduce the financing burden for ŽPCG, while leaving the state exposed to the operator’s credit risk. The utilisation of the new coaches and the performance of international services would therefore remain important once the rolling stock enters operation.
The next milestone for the project is the scheduled EBRD approval. If approved and subsequently signed, the financing would support the acquisition of new international passenger rolling stock, while the effectiveness of the investment would also depend on the performance of the railway infrastructure used by those services.
