EBRD backs Montenegro rail upgrade with €50 million loan

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EBRD backs Montenegro rail upgrade

Highlights

EBRD approved a €50 million loan to Montenegro’s railway company for rehabilitating the Golubovci-Bar line section, targeting modernised infrastructure and reduced costs.
Combined with €112.6 million in EU grants and a €63 million EIB loan, the project will enhance transport links from the Port of Bar to Serbia and European markets.
The initiative includes railway-sector reform, technical support for the new Railway Agency, and cybersecurity upgrades, reinforcing cross-border connectivity and trade under Trans-European Networks.

Financing package for strategic rail link

As reported by EBRD, citing the European Bank for Reconstruction and Development, a €50 million loan will help Montenegro’s state-owned railway company fund rehabilitation works on the Golubovci-Bar section of the line.

The planned works include renewal of tracks, three railway stations and 11 bridges, alongside upgrades to signalling, telecommunications and power-supply systems. The investment is expected to lower operating and maintenance costs, improve travel conditions for passengers and freight, and cut transport-related carbon emissions.

The scheme is part of a broader package under the Western Balkans Investment Framework. The EU is providing €112.6 million in grants, while the European Investment Bank is adding a €63 million loan.

Trade, reform and regional connectivity impact

EBRD Managing Director for South-Eastern Europe Grzegorz Zielinski says the modernisation of the route will make freight and passenger transport safer, more reliable and more sustainable. Officials from Montenegro and the EU say the rail link is important for connecting the Port of Bar more efficiently with the rest of the country, Serbia and wider European markets, supporting trade and regional integration.

Montenegro’s transport ministry says reconstruction of the section will create better conditions for passenger and freight rail transport and strengthen infrastructure for the wider economy. The line is also part of the Trans-European Networks, giving the project added strategic importance for cross-border connectivity.

Alongside construction works, the project also supports railway-sector reform and stronger institutional governance. Technical assistance is set to help Montenegro’s newly established independent Railway Agency and improve the railway operator’s cybersecurity systems in line with internationally recognised standards.

The EBRD has supported Montenegro’s railway sector since 2007, providing three loans totalling €51 million for infrastructure rehabilitation, emergency works and maintenance equipment, while also backing reforms aimed at improving safety, operational efficiency and corporate governance.

Our earlier article on Pakistan’s ML-1 railway modernisation plan explained how the country is seeking to revive the long-delayed project to strengthen transport links and regional trade corridors, with the Asian Development Bank signalling potential financial support. The report also noted that the talks broadened beyond rail to include measures to boost exports, expand climate-finance tools, and develop critical-minerals investment platforms tied to regional cooperation.

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