The European Union has announced a 175.6 million EUR financial package for the reconstruction of 39km of the Bar–Golubovci railway line – a critical portion of Rail Route 4 on the extended TEN-T Core Network.

Connecting Belgrade to the Port of Bar, the corridor links Montenegro and the Western Balkans with Central Europe.

The European Union is committing €175 million to modernise the Bar–Golubovci railway link, a strategic section of Rail Route 4 on the extended TEN-T Core Network

© European Investment Bank

The upgrade, once completed, aims to increase train speeds and improve reliability, safety and capacity. It is intended to raise the quality of rail service, accommodate 1.3 million passengers and transport 1.85 million tonnes of freight per year, as well as promote multimodal transport and strengthen the line’s resilience to climate change.

The package has been made possible via a combination of two funding sources: a 63 million EUR loan from the European Investment Bank (EIB) and a 112.6 million EUR EU grant from the European Commission under the Western Balkans Investment Framework. Total cost for the project, which is estimated at 230.8 million EUR, will be supported by a 50 million EUR loan from the European Bank for Reconstruction and Development and 5.2 million EUR from the government of Montenegro.

EIB Vice-President Robert de Groot, said:

This investment is another tangible step toward aligning Montenegro’s core infrastructure with EU standards and accelerating the country’s path toward accession.

With these latest agreements, EIB Global’s support for the transport sector in Montenegro will reach a total of €500 million, directly improving regional connectivity, boosting trade and tourism, and helping to create a more integrated common regional market.

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