The European Bank for Reconstruction and Development (EBRD) has approved a €50 million loan to fund the urgent rehabilitation of Serbia’s railway infrastructure.
The project will be carried out by Railway Infrastructure of Serbia, in collaboration with the Ministry of Construction, Transport and Infrastructure, as noted in the EBRD press release. The investment aims to enhance the quality of Serbia’s railway network, focusing on improving operational speeds and reducing the risk of derailments.
Additionally, the project seeks to boost the reliability and safety of both passenger and freight rail services, making rail transport a more attractive option and promoting a shift from road to rail.
The loan agreement was signed by Serbia’s Minister of Finance, Siniša Mali, while the project agreement was signed by Minister of Construction, Transport and Infrastructure, Goran Vesić, and Acting General Director of Railway Infrastructure, Jelena Tanasković. EBRD’s director for the Western Balkans, Matteo Colangeli, signed on behalf of the bank.
Tanasković highlighted that the loan will facilitate the purchase of essential materials, such as rails and sleepers, enabling the renewal of approximately 194 kilometers of track across Serbia. “Our goal is to enhance the quality of railway operations, increase train speeds, and improve safety on regional and local lines not included in this project. The sections we are rehabilitating are part of a nearly 1,100-kilometer railway network, which will support faster, better, and safer rail services,” she stated. The project is set to be implemented over the next two years.
Minister Vesić added that the loan will expedite repairs on specific track sections, emphasizing the importance of these efforts in ensuring higher safety and quality in railway traffic. He noted that Serbia has already inaugurated its first high-speed railway between Belgrade and Novi Sad, with plans to extend it to Subotica by November 24, allowing travel from Belgrade to northern Vojvodina in just 70 minutes.
To date, nearly 1,000 kilometers of railway have been reconstructed and modernized in Serbia. Vesić mentioned plans to build and modernize about 2,000 kilometers of track in the coming years, aiming for a complete restoration of the railway network.
Matteo Colangeli, EBRD’s director for the Western Balkans, emphasized the bank’s commitment to strengthening regional transport connections. “Investing in Serbia’s railway infrastructure through this loan is a vital step toward improving standards and reliability in the system. To date, we have signed nearly €1.1 billion in financing for the Serbian railway sector, aiming to promote rail as a preferred transport mode, enhance daily life, stimulate economic growth, and contribute to a greener future,” he stated.
The EBRD is a leading institutional investor in Serbia, having invested over €9 billion through 362 projects, primarily supporting the private sector. The bank’s focus remains on enhancing the competitiveness of the private sector, transitioning to green energy, and developing sustainable infrastructure.
