Serbia to borrow USD 130 million for modernization of railroads – Procurement of heavy machinery also planned

The National Assembly of the Republic of Serbia has confirmed the agreement on the loan for the second phase of the project of the modernization of the rail sector. The loan agreement, signed between Serbia and the International Bank for Reconstruction and Development (IBRD) on August 23 and September 2, 2024, envisages borrowing up to USD 65 million, with an additional USD 65 million provided by the French Development Agency (AFD).

The second phase of the project is directed at maintaining and improving the rail infrastructure through the procurement of heavy machinery, the modernization of the facilities and the development of IT strategies for the rail companies of Serbia. In addition to that, project activities will focus on the strengthening of sector capacities and the promotion of sustainability through the development of more acceptable transport options.

The loan is structured with a grace period of three years and a repayment period until 2035.

The project is harmonized with the operating guidelines of the IBRD and the framework agreement with AFD from 2018, with the completion date set for June 30, 2029.

Narodna skupština Republike Srbije

National Assembly of the Republic of Serbia

International Bank for Reconstruction and Development

IBRD

French Development Agency

AFD

modernization of rail sector