European Union commits €134 million to modernise Niš-Dimitrovgrad railway link
The European Union has committed an additional amount of €134 million to modernise, reconstruct and electrify the Niš-Dimitrovgrad railway section. This investment will significantly improve railway capacity, safety and service quality, while decreasing traffic bottlenecks in the city of Niš.
The financing package delivered through the Western Balkans Investment Framework (WBIF) includes a €100 million European Investment Bank (EIB Global) loan to upgrade the Sićevo-Dimitrovgrad rail line, electrify and install signalling along the entire Niš-Dimitrovgrad route, complemented by a €34 million EU grant for constructing a rail bypass around Niš. With these latest agreements, the European Union’s total investment for this section has reached €342 million. The project benefitted from EIB advisory support via the JASPERS programme and the WBIF, covering advanced preparation of the Niš bypass and support for implementing the Niš-Dimitrovgrad rail link.
“As part of a vital international transport network linking Serbia to EU countries, the project is of critical importance for stronger economic integration, boosting trade flows, attracting investment, and accelerating regional growth," said EIB Vice-President Robert de Groot. “It will improve the quality, availability and reliability of national and cross-border rail services, while enabling a gradual shift to greener transportation options.”
The €34 million EU grant provided under the WBIF will enable the construction of the railway bypass around Niš. Through integrated transport planning for the city of Niš aligned with EU standards, the project aims to reduce congestion and enhance traffic functionality.
“This project forms a key part of Serbia’s wider sustainable transport investment programme, which benefits from strong backing under the Team Europe initiative, bringing together substantial financial resources and technical expertise. The Niš-Dimitrovgrad railway link is a subsequent section of Corridor X, itself part of the wider Western Balkans-Eastern Mediterranean European Corridor that connects central European states with major ports of the Adriatic and Eastern Mediterranean. Together, these upgrades will strengthen regional connectivity and bring lasting benefits to people and businesses across Serbia,” said EU Ambassador to Serbia Andreas von Beckerath.
“The reconstruction of the Niš-Dimitrovgrad railway line is a very important project for our country, through which we are continuing to modernise and improve the quality of Serbia’s railway network. The importance of this line is immense, given that it is part of Corridor X and serves as a link between Serbia and Bulgaria, as well as a route along which large volumes of goods move. At the same time, it resolves the issue of the Niš junction, an important hub in southern Serbia. We are continuing to foster Serbia’s development and improving the quality of life in our country, and establishing a state-of-the-art railway network is a significant step in that process,” said Minister of Finance Siniša Mali.
Improved infrastructure along this key railway route will help push speeds from a current average of 50 km/h to up to 120km/h and positively impact travelling habits by increasing the annual number of passengers from around 170 000 to some 550 000, and total freight transport from 3.2 million to around 6.2 million tonnes a year.
“Thanks to the support of the European Union and the European Investment Bank, the implementation of the Niš–Dimitrovgrad project began at the end of 2023”, said Minister of Construction, Transportation and Infrastructure Aleksandra Sofronijević. “The EIB and the EU have continued to support the development and construction of this infrastructure project of high public importance by signing new loan agreements and granting non-refundable funds, thereby creating a key financial prerequisite for the continuous modernisation of the Niš–Dimitrovgrad railway section. This modernisation enables better connectivity with the TEN-T network, representing a crucial step toward electrifying the last non-electrified section of Corridor X.”
About WBIF and Global Gateway
The Western Balkans Investment Framework (WBIF) contributes directly to Global Gateway, the EU’s strategy to boost smart, clean and secure connections in digital, energy and transport, while strengthening health, education and research systems worldwide. Global Gateway aims to mobilise up to €300 billion worldwide in investments through a Team Europe approach, bringing together the EU, its Member States and financial institutions to leverage investments for a transformational impact.