This financial support is geared towards upgrading a critical 167 km railway stretch between Bar, Podgorica, and Vrbnica, which is an integral part of the Trans-European Transport Network (TEN-T). The signing ceremony in Podgorica was attended by notable figures, including Minister of Finance Novica Vuković, Minister of Transport and Maritime Affairs Filip Radulović, and EU Ambassador to Montenegro Oana Cristina Popa, among other high-level officials.
The funding package, which accounts for 95% of the project’s estimated costs, combines a €40 million loan from the EIB and €35.5 million in grants through the Western Balkans Investment Framework (WBIF), with an additional €4.5 million from Montenegro’s national funds
The improvements will include rehabilitating a key 20 km rail segment, reconstructing bridges and tunnels, and enhancing rolling stock facilities. They aim to boost efficiency and safety for over a million passengers and facilitate freight traffic.
Minister of Transport Filip Radulović highlighted the project’s significance for Montenegro’s integration with European transport systems and future EU compliance. Minister of Finance Novica Vuković noted that this agreement is part of ongoing collaborations with the EIB to fortify Montenegro’s infrastructure, which is essential for the country’s economic expansion and connectivity. EU Ambassador Oana Cristina Popa emphasised the EU’s commitment to supporting Montenegro’s shift towards more sustainable transport modes, aligning with broader economic development and environmental objectives.
