RAILWAY NIS-DIMITROVGRAD

Modernisation and reconstruction of the existing railway line Nis-Dimitrovgrad (aprox. 96 km) and construction of railway by-pass around Nis (aprox. 22 km), in Serbia.

By facilitating rail transport, the project will contribute to the competitiveness of the country's economy. The project will increase the quality, availability and reliability of rail services in Serbia, and contribute to the modal shift from road to rail. It will generate time and vehicle operating costs savings, reduce the maintenance costs of the infrastructure, improve railway and road safety and present environmental benefits, including climate change mitigation. The project contributes to the development of economic infrastructure, in particular transport. It is located on the core Trans-European Transport Network (TEN-T), as extended to specific neighbouring countries based on high-level agreements on transport infrastructure. The project lies on a section pre-identified as a priority for possible EU funding under the EU sponsored 2015 Connectivity Agenda. The project is eligible for the Bank's financing under Article 309 (c) and under the EIB's External Lending Mandate. Apart from domestic traffic, the project is expected to contribute to the traffic between Bulgaria and Serbia, and via Serbia between Bulgaria and the Central European EU Member States.

The first component of the project (Nis – Dimitrovgrad line) is expected to be mainly within the existing right of way; therefore potential negative environmental and social impacts are likely to be minor. If situated in the EU, the project would likely fall within Annex II of the EIA Directive and therefore be subject to screening. The second component of the project (railway by-pass around Niš) is on a new alignment and if situated in the EU, would fall within Annex I of the EIA Directive and therefore be subject to an Environmental Impact Assessment (EIA). The potential impact on any conservation areas will also need to be appraised. The compliance of the procedures in place with the EIB environmental and social standards will be analysed during the appraisal.

If situated in the EU, the promoter would be subject to public procurement legislation. The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

This operation is covered by the ELM Guarantee.