Montenegro continues major investment cycle in railroad infrastructure – EUR 50 million contract signed for modernization of Golubovci-Bar rail line

A loan agreement worth EUR 50 million has been signed between the European Bank for Reconstruction and Development (EBRD) and Montenegro for the reconstruction and modernization of a 39-kilometer section of the rail line between Golubovci and Bar, one of the country’s most important transport links and a key route to the Port of Bar.

The loan agreement was signed by Minister of Finance Novica Vukovic and EBRD Director for Southeast Europe Grzegorz Zielinski. Meanwhile, the project agreement for the reconstruction of the Golubovci-Bar rail line was signed by Minister of Transport Rados Zecevic, Board Member of Railway Infrastructure of Montenegro Vladimir Merdovic, and EBRD Director for Southeast Europe Grzegorz Zielinski, in the presence of Bernard Brunet, a representative of the European Union Delegation to Montenegro.

As announced, the EBRD loan is part of a broader financial package worth over EUR 225 million, which also includes EUR 112.6 million in European Union grants and a EUR 63 million loan from the European Investment Bank (EIB).

The planned works will encompass track renewal, the reconstruction of three rail stations and 11 bridges, and the upgrading of signaling and safety, telecommunications, and power supply systems. The project’s implementation will enhance the safety and reliability of rail transport, reduce travel times, and lower operating and maintenance costs, while creating better conditions for both passenger and freight traffic.

Grzegorz Zielinski, EBRD Director for Southeast Europe, highlighted that modernizing this vital rail link would make passenger and freight transport safer, more reliable and more sustainable.

– By more efficiently connecting the Port of Bar with Montenegro, neighboring Serbia, and the wider European market, the project will foster trade, regional integration, and the country’s transition to a greener transport system – Zielinski said.

Bernard Brunet, Head of Cooperation at the European Union Delegation to Montenegro, noted that the modernization of the Golubovci-Bar rail line was a key priority for the European Union, given that the line is part of the Trans-European Transport Network.

– Developing modern rail lines will improve Montenegro’s connectivity with neighboring countries and broader European markets, while promoting more sustainable and decarbonized transport. Furthermore, the combination of European Commission grants and loans from the EIB and EBRD demonstrates added value and our capacity to finance major investment projects that benefit the citizens and businesses of Montenegro. The signing of this loan agreement has created the conditions for the rapid commencement of works and the continuous modernization of this strategically important railway line – Brunet pointed out.

Minister Vukovic stated that this was not merely an investment in 39 kilometers of rail track, but an investment in Montenegro’s future, its connectivity with the region and Europe, and a stronger economic foundation for future generations.

– It is particularly important that we are implementing this project with the strong support of our European partners, through a combination of loans and grants. This demonstrates that Montenegro recognizes its development priorities and secures high-quality, sustainable funding sources for them. As a government, we will continue to manage public finances responsibly and create conditions to transform capital investments into better infrastructure, greater economic potential, and a better quality of life for citizens. The modernization of the Golubovci-Bar rail line represents a significant step in that direction and confirms our determination to strengthen Montenegro’s infrastructural and economic ties with Europe.

The reconstruction project for the Golubovci-Bar railway section represents a continuation of efforts to modernize railway infrastructure along the Bar-Golubovci route and is part of a broader financial arrangement involving funds from the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), as well as European Union grants, announced Minister of Transport Rados Zecevic.

– The signing of the project contract marks a significant step in modernizing Montenegro’s rail system and enhancing its safety, reliability, and efficiency. The EBRD’s support through a EUR 50 million loan represents a strong affirmation of the shared commitment to developing high-quality, sustainable railway infrastructure in Montenegro and enhancing rail connectivity with the region and the European transport network – stated Zecevic.

He noted that the reconstruction of this vital section would help create better conditions for passenger and freight rail transport, as well as a modern, more reliable railway infrastructure serving citizens, the business community, and Montenegro’s overall economic development.

The statement adds that the investment will further strengthen Montenegro’s domestic and regional transport links and support the shift from road to rail transport, thereby contributing to a reduction in transport-related carbon emissions.

– In addition to infrastructure works, the project will support railway sector reform and the strengthening of institutional governance. Technical assistance will be provided to support the development of the newly established independent Railway Agency of Montenegro, as well as to upgrade the railway operator’s cybersecurity systems in line with internationally recognized standards – the statement reads.

The project is being implemented as part of a broader investment package supported by the Western Balkans Investment Framework, with financial backing from European Union institutions and European development banks.

The EBRD has been supporting the modernization of Montenegro’s rail sector since 2007. To date, the Bank has provided three loans totaling EUR 51 million for the rehabilitation of rail infrastructure, emergency works, and the procurement of railroad maintenance equipment.

The signing of the new loan agreement creates the conditions for continuing the modernization of one of Montenegro’s most important transport links and for strengthening connections between Podgorica, the Port of Bar, the region, and the European market.

Ministry of Finance

Ministry of Transport

European Bank for Reconstruction and Development

EBRD

European Investment Bank

EIB

Railway infrastructure of Montenegro

EU Delegation to Montenegro

Government of Montenegro

Port of Bar

Novica Vuković

Grzegorz Zielinski

Radoš Zečević

Vladimir Merdović

Bernard Brunet

Golubovci Bar railroad

reconstruction of Belgrade Bar railroad