Orient/East-Med Corridor: Montenegro – Serbia R4 Rail Interconnection, Bar – Vrbnica Section

Orient/East-Med Corridor: Montenegro – Serbia R4 Rail Interconnection, Bar – Vrbnica Section

Project Description

The extension of the Orient/East-Med Corridor into the Western Balkans along Route 4 is approximately 580 km long and runs from Vrsac (Serbia – Romania border) to Belgrade (Serbia) and then to Podgorica and Bar (Montenegro). Bar – Vrbnica (the latter at the Montenegro – Serbia border) is the most important section of the Montenegrin rail network, carrying about 20% of rail passengers and about 60% of the freight.  Rail plays an important role in the Montenegrin economy, accounting for almost 60% of all freight and 10% of passenger travel.

The Bar – Vrbnica route opened to traffic in 1976 and since then there has been no major overhaul of the signalling systems nor of the numerous bridges and tunnels located on this route. Montenegro has however commenced planning for the rehabilitation and modernisation of the entire railway track since the early 2000s, with assistance from the European Union, the European Investment Bank, and the European Bank for Reconstruction and Development.

The EU has provided technical assistance for project preparation and co-funds the investments under the Connectivity Agenda and Flagship 2 - Connecting North to South - of the Economic and Investment Plan for the Western Balkans through the WBIF.

Project Financing

WBIF Grant WB10-MNE-TRA-01 € 1,005,000
WBIF Grant WB14-MNE-TRA-01 € 3,015,000
EIB Loan € 7,000,000
National Contribution Own Contribution € 500,000
EBRD Loan € 15,000,000
WBIF Grant WB16-MNE-TRA-01 € 1,507,500
WBIF Grant WB17-MNE-TRA-01 € 1,242,066
EIB Loan € 7,000,000
EU IPA External Grant € 3,000,000
WBIF Grant WB-IG03-MNE-TRA-02 € 16,129,143
EIB Loan € 13,395,826
WBIF Grant WB21-MNE-TRA-01 € 3,309,566
EIB Loan € 52,905,525
WBIF Grant WB-IG00-MNE-TRA-01 € 20,400,000
EIB Loan € 20,000,000
WBIF Grant WB24-MNE-TRA-01 € 502,500
EIB Loan € 26,130,000
Anticipated WBIF Grant External Grant € 920,000
WBIF Grant WB13-MNE-TRA-01 € 2,512,500
WBIF Grant WB-IG05-MNE-TRA-01 € 20,544,082
EIB Loan € 18,000,000
National Contribution Own Contribution € 300,000
National Contribution Own Contribution € 61,106
WBIF Grant WB29-MNE-TRA-01 € 884,149
EBRD Loan € 52,905,525
National Contribution Own Contribution € 250,000
WBIF Grant WB17-MNE-TRA-01 € 687,534
WBIF Grant WB-IG09-MNE-TRA-01 € 116,524,059
Total € 405,631,081
Total Grants € 188,263,099
Total Loans € 212,336,876

Partner Financial Organisations

Western Balkans Partners