MONTENEGRO RAILWAYS III

Promoter – Financial Intermediary

ZELJEZNICKA INFRASTRUKTURA CRNE GORE AD

Location

• Montenegro

Description

Rehabilitation of railway infrastructure along the main north-south trunk line crossing Montenegro (extended core TEN-T, Orient/East Med Corridor)

Objectives

The project contributes to the development of economic infrastructure, in particular transport. It is located on the core Trans-European Transport Network (TEN-T), Orient/East Med Corridor, as extended to specific neighbouring countries based on high-level agreements on transport infrastructure. The projects lies on a section pre-identified as a priority under the EU-sponsored 2015 Connectivity Agenda and is expected to benefit from a EUR 20m investment grant. The project is eligible for the Bank's financing under Article 309 (c) and under the EIB's external lending mandate.

Comments

Apart from the domestic traffic, the project is expected to contribute to the traffic between Montenegro and Serbia and, via Serbia, other Western Balkan countries and the EU. 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 Montenegro, and is expected to generate time and vehicle operating and maintenance costs savings, reduce infrastructure maintenance costs and improve railway safety. It may also contribute to the modal shift from road to rail and, thereby, present environmental and road safety benefits.

Sector(s)

• Transport - Transportation and storage

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 40 million

Total cost (Approximate amount)

EUR 45 million

Environmental aspects

The project 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 Environmental Impact Assessment (EIA) Directive and therefore be subject to screening. The potential impact on any conservation areas will also need to be appraised. Compliance of the procedures in place with EIB environmental and social standards will be analysed during the appraisal.

Procurement

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.

Status

Signed - 20/03/2017