State to borrow another 100 million euros for Nis-Dimitrovgrad railroad

The Government of Serbia has adopted the Draft Law on the Confirmation of the Financing Agreement for the Project for the Reconstruction of the Nis-Dimitrovgrad B Railroad, which was signed in August between the Republic of Serbia and the European Investment Bank. The agreement envisages a loan of 100 million euros.

The total value of the project is 502 million euros, of which 234 million euros is provided by EIB loans, 162 million euros from the Serbian budget, while 105.92 million euros is a donation from the Western Balkans Investment Framework (WBIF).

Let us remind that, in 2024, it was said that the works on the reconstruction and modernization of the Nis-Dimitrovgrad railroad and the bypass railroad around Nis would cost 430 million euros, of which 108 million was a gift from the EU. As Serbian President Aleksandar Vucic stated at the time, they should be completed by the end of 2027.

The increase in project costs, as stated in this draft law, is a consequence of the increase in energy, steel and labor prices, as well as additional safety measures.

The project includes the modernization of the single-track Sicevo-Dimitrovgrad railroad, the construction of the northern bypass railroad around Nis, electrification and the introduction of a modern signaling and safety system, as well as design and supervision services. The modernized infrastructure will be intended for mixed traffic, passenger and freight, with a maximum speed of 80 to 160 km/h, an axle load of 22.5 tons and a capacity of 46 pairs of trains per day.

The Government proposed to the Parliament to adopt this law as an urgent procedure, since the withdrawal of funds from the EIB for financing the project is conditional on its coming into effect.

I. Z.

Vlada Republike Srbije

Evropska investiciona banka EIB

reconstruction of Niš Dimitrovgrad railroad

Niš Dimitrovgrad railroad