EU commits $207.2 mn to upgrade Montenegro's Bar–Golubovci rail link

The financing package comprises a €63 million loan from the European Investment Bank (EIB) and a €112.6 million EU grant from the European Commission under the Western Balkans Investment Framework, the EIB said in a press release.

Once completed, the upgraded rail section will increase train speeds and significantly improve reliability, safety and capacity. The project is expected to transport 1.85 million tonnes of freight, while promoting multimodal transport, enhancing climate resilience and supporting Montenegro’s green transition by shifting traffic from road to rail.

The total project cost is estimated at €230.8 million, with additional support including a €50 million loan from the European Bank for Reconstruction and Development and €5.2 million from the government of Montenegro.

“This investment is another tangible step toward aligning Montenegro’s core infrastructure with EU standards and accelerating the country’s path toward accession,” said Robert de Groot, EIB vice-president. “With these latest agreements, EIB Global’s support for the transport sector in Montenegro will reach a total of €500 million, directly improving regional connectivity, boosting trade and tourism, and helping to create a more integrated common regional market.”

Novica Vukovic, Finance Minister of Montenegro has highlighted the fiscal and strategic importance of the agreement. “With the conclusion of the €63 million loan agreement with the European Investment Bank, a stable and favourable source of financing has been secured for one of the key infrastructure projects in the railway sector,” he said. “The loan arrangement is fully aligned with the medium-term fiscal policy framework and the public debt management strategy, while enabling the implementation of a project with strong developmental relevance and European significance.”

The project preparation was supported by the European Commission and the EIB’s advisory programme JASPERS, ensuring compliance with EU environmental, social and technical standards.

“Modern, sustainable infrastructure is at the heart of Montenegro’s European future. By investing in railways, we are investing in greener transport, better connectivity, and stronger economic integration with the region and the EU,” said Johann Sattler, EU Ambassador to Montenegro. “With one of the biggest single grants from EU taxpayers, and help of our partners, it is finally time to start long-awaited reconstruction of the Bar–Golubovci railway.”

Montenegrin Minister of Transport Maja Vukicevic described the project as a milestone for the country’s transport sector. “This project represents one of the most important investments in Montenegro’s railway infrastructure in decades and a clear signal of trust from our European partners,” she said. “By upgrading the Bar–Golubovci section, we are not only improving safety, efficiency, and service quality, but also strengthening Montenegro’s role as a key transport hub between the Western Balkans and the European Union.”

The Bar–Golubovci upgrade forms part of broader efforts to modernise the Bar–Belgrade railway corridor, reinforcing Montenegro’s position within the regional transport network and supporting its economic development and EU accession ambitions, added the release.

ALCHEMPro News Desk (SG)