The European Investment Bank (EIB), the European Union's financing institution, is advancing a EUR 85 million loan to ZTP Belgrade (EUR 70 million) and JPZ Montenegro (EUR 15 million), the railway companies of Serbia and Montenegro, for priority rehabilitation works on main railway lines between Belgrade, Podgorica and Bar. The project, which represents a landmark cooperation agreement between Serbia and Montenegro, also includes technical assistance and studies for the restructuring of the local railway sector.
The financing contract was signed in Belgrade today by EIB's Director of lending operations in the Mediterranean and in the Balkans, Antonello Pugliese, and Prof. Miroljub Labus, Deputy Prime Minister of the Federal Republic of Yugoslavia.
The project concerns a programme for the rehabilitation of some 62.1 km of railway sections along Pan-European Corridor X, and some 79.3 km on the railway line Belgrade-Podgorica-Bar, including the refurbishment and upgrading of signalling and safety equipment, telecommunication and electrical systems, and the supply of equipment, spare parts and machines for track maintenance. Most of the financed works and supply of equipment will be completed by the end of 2003 in Serbia, and by the end of 2004 in Montenegro.
The EIB resumed its operations in the Federal Republic of Yugoslavia in 2001, comprising lending activity for projects in Serbia and Montenegro. In 2001, the first EIB loan to FRY - for an amount of EUR 66 million - contributed to urgent works on national roads in both countries, the upgrading of Belgrade Airport and the reconstruction of the breakwater of the Port of Bar. For 2002, the EIB has foreseen an extensive lending programme of about EUR 300mln, ensuring support for the transport, energy, SME and water and wastewater sectors.
The EIB is financing projects in the Balkans under its current mandate for Central and Eastern Europe agreed by the EU Council of Ministers for 2000/2007, foreseeing EIB lending of up to EUR 9.28 billion in the ten Accession Countries and in five other Countries of South Eastern Europe, which do not have candidate status: Albania, Bosnia and Herzegovina, Croatia, Federal Republic of Yugoslavia and the FYROM.In cooperation with the European Commission and the other multilateral financing institutions. the EIB plays an active role in the preparation of the reconstruction investment programme of South Eastern European Countries. The first group of infrastructure projects comprised 85 projects totalling EUR 4 billion. 35 projects are Quick-Start totalling EUR 1.1 billion. The EIB played a lead role in 14 projects, totalling some EUR 800 million.