MONTENEGRO RAILWAYS II

The proposed project consists of the rehabilitation of railway infrastructure along the main trunk line connecting the Port of Bar and the capital Podgorica with Belgrade and Pan-European Corridor X, as well as the acquisition of selected items of rolling stock for maintenance and regional passenger services.

The transport sector is important to the Montenegrin economy, and the railways play a critical role, also given the insufficient road network and the mountainous terrain, in ensuring movements of freight, particularly bulk items such as ores, steel and agricultural products. Railways are also a key transport mode for the Adriatic Port of Bar. Improvements in the railway infrastructure will enable the railways to respond to the demand and fully perform this role. This will benefit the economy of Montenegro which still relies on certain industries to generate most of the added value and employment.

The proposed project comprises the rehabilitation of existing infrastructure on the existing alignment. It would therefore neither fall under Annex I nor Annex II of the EU Directive, thus not requiring an EIA. Taking into account the review of documentation concerning the project, no significant environmental problems are foreseen and the operation should have a rather limited environmental impact.

The Promoter is aware of the Bank procedures regarding procurement. Procurement procedures will be checked for consistency with the Bank’s guidelines.

Railways