The European Union is providing a €175.6 million ( US$205 million ) financial package for the reconstruction of 39 kilometres of the Bar-Golubovci railway line, a vital corridor connecting Belgrade to the Port of Bar, linking Montenegro and the Western Balkans with Central Europe.

The package includes a €63 million loan from the European Investment Bank ( EIB ) and a €112.6 million grant from the European Commission under the Western Balkans Investment Framework.

The project, estimated to cost €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 railway line is a key section of Rail Route 4 on the extended TEN-T Core Network. Once completed, the upgrade will increase train speeds and improve railway reliability, safety, and capacity.

The project will raise the quality of the rail service, enabling the line to accommodate 1.3 million passengers and transport 1.85 million tonnes of freight annually. It will promote multimodal transport, strengthen resilience to climate change, and advance Montenegro’s green transition by shifting traffic from road to rail.

“This investment is another tangible step towards aligning Montenegro’s core infrastructure with EU standards and accelerating the country’s path towards accession,” says EIB vice-president Robert de Groot. “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.”

“With the conclusion of the €63 million loan agreement with the EIB, a stable and favourable source of financing has been secured for one of the key infrastructure projects in the railway sector,” says Montenegro’s finance minister Novica Vuković. 

“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. ”

Transport minister Maja Vukićević adds: “This project represents one of the most important investments in Montenegro’s railway infrastructure in decades and a clear signal of trust from our 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.”