EU to invest another EUR 134 million to modernize Niš-Dimitrovgrad railway, including Niš rail bypass

The European Union has committed EUR 134 million to modernize, reconstruct and electrify the Niš-Dimitrovgrad railway section, it was announced today.

The financing package includes a EUR 100 million European Investment Bank (EIB Global) loan to upgrade the Sićevo-Dimitrovgrad rail line, electrify and install signaling along the entire Niš-Dimitrovgrad route. This is complemented by a EUR 34 million EU grant for constructing a rail bypass around Niš.

- These investments will significantly improve railway capacity, safety and service quality, while decreasing traffic bottlenecks in the city of Niš - the EIB says in a press release.

With these latest agreements, the European Union’s support for this section has reached EUR 342 million, including EUR 234 million in EIB Global loans and EUR 108 million in EU grants.

The project benefited from EIB advisory support via the JASPERS program and the Western Balkans Investment Framework (WBIF), covering advanced preparation of the Niš bypass and support for implementing the Niš-Dimitrovgrad rail link.

- As part of a vital international transport network linking Serbia to EU countries, the project is of critical importance for stronger economic integration, boosting trade flows, attracting investment, and accelerating regional growth. It will improve the quality, availability and reliability of national and cross-border rail services, while enabling a gradual shift to greener transportation options - said EIB Vice-President Robert de Groot.

The EUR 34 million EU grant provided under the WBIF will enable the construction of the railway bypass around Niš. Through integrated transport planning for the city of Niš aligned with EU standards, the project aims to reduce congestion and enhance traffic functionality.

- This project forms a key part of Serbia’s wider sustainable transport investment program, which benefits from strong backing under the Team Europe initiative, bringing together substantial financial resources and technical expertise - said EU Ambassador to Serbia Andreas von Beckerath.