Podgorica, (MINA-BUSINESS) – Representatives of the European Bank for Reconstruction and Development (EBRD) and the Ministry of Finance have signed a €50 million loan agreement to reconstruct and modernize 39 kilometres of railway on the Golubovci–Bar section, one of the country’s most important transport links and a key route to the Port of Bar.
The loan agreement was signed by Minister of Finance Novica Vukovic and EBRD’s Managing Director for Southeastern Europe Grzegorz Zielinski, while the project agreement for the reconstruction of the Golubovci–Bar railway section was signed by Minister of Transport Rados Zecevic, Railway Infrastructure Company (ZICG) Board Member Vladimir Merdović, and Zielinski, in the presence of Bernard Brunet, representing the Delegation of the European Union to Montenegro.
The Ministry of Finance said in a press release the EBRD loan is part of a broader financing package worth more than €225 million, which also includes €112.6 million in European Union grants and a €63 million loan from the European Investment Bank (EIB).
“The planned works will include track rehabilitation, the reconstruction of three railway stations and 11 bridges, as well as upgrades to signalling and safety, telecommunications, and power supply systems,” the press release said.
The project is expected to improve the safety and reliability of rail transport, shorten travel times, and reduce operating and maintenance costs, while creating better conditions for both passenger and freight services.
Zielinski said that modernizing this vital railway connection will make travel and freight transport safer, more reliable and more sustainable.
“By linking the Port of Bar more efficiently with the rest of Montenegro, neighbouring Serbia and the wider European market, the project will support trade, regional integration and the country’s transition to a greener transport system,” Zielinski said.
Brunet said that the modernization of the Golubovci-Bar railway is an important priority for the EU, as this line is part of the Trans-European Networks.
“The development of modern rail lines will improve Montenegro’s connectivity with its neighbours and wider European markets, while encouraging more sustainable and decarbonized transport. In addition, the combination of grants from the European Commission and loans from the EIB and the EBRD demonstrates the added value of a Team Europe approach and our capacity to finance large investment projects for the benefit of the citizens and companies of Montenegro.
According to him, with the signing of this loan, the conditions are now in place for a swift start to the works and the sustained modernisation of this strategic railway line.
Vukovic said that this is not merely an investment in 39 kilometres of railway track; it is an investment in Montenegro’s future, its connectivity with the region and Europe, and a stronger economic foundation for future generations.
“It is particularly significant that we are implementing this project with the strong support of our European partners – through a combination of loans and grants – demonstrating that Montenegro recognizes its development priorities and secures high-quality, sustainable funding sources for them. We will continue to manage public finances responsibly and create the conditions for capital investments to translate into better infrastructure, greater economic potential and a higher quality of life for our citizens,” Vukovic said.
According to him, the modernization of the Golubovci-Bar railway marks an important step in that direction and confirms our determination to forge stronger infrastructural and economic ties between Montenegro and Europe.
Minister of Transport Rados Zecevic stated that the reconstruction of this important section will contribute to creating better conditions for passenger and freight rail transport, as well as a modern and more reliable railway infrastructure that will serve the citizens, the business sector, and the overall economic development of Montenegro.
Alongside the infrastructure works, the project will advance railway-sector reform and strengthen institutional governance. Technical assistance will support the development of Montenegro’s newly established independent Railway Agency and help improve the railway operator’s cybersecurity systems in line with internationally recognized standards.
