Railway Transport company planning to purchase up to 10 new sleeping cars – EBRD considering loan of up to EUR 30 million with state guarantee

The Railway Transport of Montenegro company (Zeljeznicki prevoz Crne Gore - ZPCG) could secure a loan of up to EUR 30 million from the European Bank for Reconstruction and Development (EBRD), backed by a state guarantee, to purchase up to 10 new, modern rail sleeping cars.

According to EBRD project documentation, the funds are intended for the modernization of passenger rail transport in Montenegro and the replacement of ZPCG’s aging rolling stock.

The new sleeping cars are expected to improve the quality and standards of passenger services, particularly on international rail routes, and support the interoperability of the Montenegrin rail network with European networks.

The document published by the EBRD states that the investment is crucial for meeting the growing demand for high-quality international rail services along key corridors.

The project is also expected to contribute to increased use of rail as a low-emission mode of transport, specifically by encouraging passengers to switch from other forms of transport to rail.

The project has an ETI score of 67, and its contribution to the Green Economy Transition (GET) program stands at 100%.

ZPCG was established in 2008 and is the sole passenger rail operator in Montenegro. The state holds a 96.34% stake in the company, while individual investors own 2.02% and investment funds hold 1.64%.

In addition to providing financing, the EBRD plans to continue the dialogue on sector reform and support the strengthening of ZPCG’s capacity for procurement and project management. Technical support for the company in project implementation is also envisaged.

– The project is categorized as Category B under the EBRD’s 2024 Environmental and Social Policy. An environmental and social impact assessment is currently underway, covering, among other things, occupational health and safety, greenhouse gas emissions, waste management, noise and vibration, fire protection, and passenger safety – it was noted.

Special attention, it is added, will also be paid to the disposal of the aging rolling stock that is to be replaced by new carriages.

The total project value is estimated at EUR 30 million, matching the planned amount of EBRD financing. The loan would be secured by a state guarantee.

The EBRD states that project preparation is ongoing, and the project summary will be updated following the completion of the environmental and social impact assessment.

Željeznički prevoz Crne Gore

ŽPCG

Railway Transport of Montenegro

European Bank for Reconstruction and Development

EBRD

procurement of trains

purchase of trains

purchase of sleeping cars