Regional Broadband Infrastructure Development

Orient/East-Med Corridor: Reconstruction and Modernisation of Stalac - Krajlevo - Rudnica Railway Line

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Project Financing

WBIF Grant WB14-SRB-TRA-01 € 1,407,000
Anticipated WBIF INV Grant External Grant € 134,830,000
National Contribution Own Contribution € 23,990,000
WBIF Grant WB24-SRB-TRA-02 € 3,718,500
EIB Loan € 161,200,000
WBIF Grant WB25-SRB-TRA-01 € 2,964,499
Anticipated WBIF INV Grant External Grant € 87,282,881
National Contribution Own Contribution € 21,230,000
EIB Loan € 85,000,000
Total € 521,622,880
Total Grants € 8,089,999
Total Loans € 246,200,000

Project Description

The railway line from Stalać to Kraljevo and Rudnica ensures a direct connection between Belgrade and Pristina via Corridor X and Route 10. Currently, the line is in poor condition, single-track, non-electrified, and with a maximum allowed speed for trains of 30-60 km/h.

This investment project will rehabilitate the entire railway line, including electrification and signalling and telecommunication systems, from Stalać to the administrative border with Kosovo*. The investments are part of the indicative extension of the TEN-T Core Network (Orient/Est-Med Corridor) to the Western Balkans.

The WBIF has prepared the pre-feasibility study for the modernisation of the line and finances the feasibility studies, preliminary designs, environmental and social impact assessments, and tender documents for construction works. The investments are developed under Flagship 2 – Connecting North to South of the Economic and Investment Plan for the Western Balkans.

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.

Results and Benefits

  • 149 km of railway line rehabilitated
  • Increase in traffic speed from 30-60 km/h to 120 km/h
  • Increased passenger and cargo rail capacity
  • Reduction in travel times, operational and maintenance costs, and pollution levels
  • Improved trade flows in the wider region, bringing a positive impact to the economy
  • Countries: Serbia
  • Code: PRJ-SRB-TRA-011
  • Sector: Transport
  • Lead IFI: EIB, EIB
  • Status: Preparation
  • Beneficiary: Serbian Railway Infrastructure
Project financing split

Partner Financial Organisations

Western Balkans Partners