Podgorica, (MINA-BUSINESS) – According to the Ministry of Finance, the European Union is providing a €175.6 million financial package for the reconstruction of 39 kilometers of the Bar–Golubovci railway line, a key section of Rail Route 4 on the extended TEN-T Core Network.

 

The Ministry stated in a press release that this vital corridor connects Belgrade to the Port of Bar, linking Montenegro and the Western Balkans with Central Europe. 

 

“The upgrade will boost train speeds, and significantly improve reliability, safety, and capacity of the railway infrastructure. The project will raise the quality of rail service, accommodating 1.3 million passengers and transporting 1.85 million tons of freight annually,” the press release reads.

 

It will also promote multimodal transport, strengthen resilience to climate change, and advance Montenegro’s green transition by shifting traffic from road to rail.

 

The package includes a €63 million loan from the European Investment Bank (EIB Global) and a €112.6 million EU grant from the European Commission under the Western Balkans Investment Framework, a landmark investment that underscores the EU’s strong commitment to Montenegro.

 

“The total project cost, estimated at €230.8 million, will also be supported by a €50 million loan from the European Bank for Reconstruction and Development and €5.2 million from the Government of Montenegro,” the press release reads.

 

EIB Vice-President Robert de Groot stated that this investment is another tangible step toward aligning Montenegro’s core infrastructure with EU standards and accelerating the country’s path toward accession.

 

“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,” De Groot said.

 

Minister of Finance Novica Vukovic said that, 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.

 

“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. Cooperation with the EIB once again confirms the institution’s confidence in Montenegro’s fiscal stability and the country’s capacity to responsibly manage major infrastructure investments,” said Vukovic.

 

The European Commission and the EIB advisory programme JASPERS provided technical support that ensured the project was prepared in line with EU environmental, social, and technical standards.

 

EU Ambassador to Montenegro Johann Sattler said that 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. 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,” Sattler said. 

 

Minister of Transport Maja Vukicevic said that this project represents one of the most important investments in Montenegro’s railway infrastructure in decades and a clear signal of trust from European partners.

 

“Our long-standing cooperation with the European Investment Bank has been crucial in modernizing the Bar-Belgrade railway corridor, which is the backbone of sustainable transport in Montenegro. 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. This investment directly supports our green transition, economic development, and EU accession goals,” said Vukicevic.