The Ministry of Transport, Railway Infrastructure of Montenegro (ŽICG) and the Railway Vehicle Maintenance company have signed agreements to transfer grant funds provided through financial support from the European Investment Bank (EIB).
These agreements are aimed at implementing a project to upgrade the railway infrastructure on the Bar–Vrbnica section, part of the Orient/East-Med Corridor (R4 Montenegro–Serbia interconnection).
The signed agreements include grant transfers from the Western Balkans Investment Framework amounting to €15.77 million and €19.71 million.
The funds will be used for modernizing the railway line, including track and bridge rehabilitation, as well as enhancing the capacity of workshops for railway vehicle maintenance. All contracts include strict provisions to ensure funds are used in accordance with EU regulations.
Additionally, a future agreement is expected to be signed to transfer €40 million from an EIB loan, which will outline obligations for the Ministry of Finance, Ministry of Transport, ŽICG, and the Railway Vehicle Maintenance company.
The total investment in modernizing the railway system through this project will amount to €80 million, with Montenegro contributing €4.53 million directly.
The Ministry of Transport expressed gratitude to the European Investment Bank for its strong support and stated confidence that the project will significantly improve safety, reliability, and efficiency of Montenegro’s railway transport.
