Signature(s)
Summary sheet
- Transport - Transportation and storage
The project concerns the reconstruction of the Bar-Golubovci section, approximately 40 km of open electrified railway line, 17 km of station tracks and 6 km of shunting tracks. The section is part of the Bar-Vrbnica railway route which lies on the indicative Extended Orient/East Mediterranean Trans-European Network (TEN-T) core corridor (South East Europe Transport Observatory - SEETO Route 4).
The aim is to facilitate growth of rail traffic on the Montenegrin, Western Balkans and wider European railway network. This will result in time savings, vehicle operating cost savings, transport safety benefits, and environmental benefits in terms of reduction of greenhouse gases and pollutants.
The project upgrades a 39 km single-track electrified railway between Bar and Golubovci, near Podgorica, Montenegro. It aims to remove speed restrictions, enhance reliability, adapt to climate change, reduce maintenance costs, and improve safety. The line is part of the Trans-European Transport Network (TEN-T) Rail Route 4 and Flagship 2 of the EU Economic and Investment Plan for the Western Balkans (EIPWB). The project is 100% eligible under Climate Action due to its adaptation and mitigation effects.
Strategically, it aligns with EU transport policy, the EU Green Agenda, Montenegro's national strategy, Instrument for Pre-accession Assistance (IPA) III (Window 3 and Thematic Priority 2), and Neighbourhood, Development and International Cooperation Instrument (NDICI) ? Global Europe, supporting sustainable connectivity and climate resilience. It also contributes to SDGs and supports the EU Connectivity Agenda, Berlin Process, and EIPWB Flagships 2 and 3.
The operation addresses market failures by correcting underinvestment in sustainable transport infrastructure and internalising environmental externalities.
The EIB will provide a long-tenor loan with flexible withdrawal, complementing a WBIF grant and an expected EBRD loan. The EIB also offers advisory support throughout the project cycle, ensuring optimal blending with EU funds and sustainable financing terms.
The project falls under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU, as amended by Directive 2014/52/EU, and has therefore been subject to screening in line with the national legislation. An EIA report was prepared in 2024 and in Q1 2025, the EIA report has been submitted to the Competent Authority to carry out the applicable regulatory procedure. The project crosses for about 15km Lake Shkodër, an Emerald site (ME0000003) and RAMSAR site, as well as being located in the vicinity of another Emerald site Rumija (ME000000D) and relevant provisions related to the impact of the project on protected areas will be checked during the appraisal). The project has potential transboundary effects, and the measures to implement provisions of the Espoo Convention are to be appraised.
The promoter shall ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement legislation.
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