The European Investment Bank (EIB) has confirmed that it has not financed the reconstruction or modernization of the Belgrade-Novi Sad railway line, nor the Novi Sad station. The EIB clarified this in response to Forbes Serbia’s inquiry regarding its involvement in the project.
The EIB’s statement addresses the question of whether any loans or funds were allocated for the Belgrade-Novi Sad-Subotica-Kelebija railway reconstruction. According to the response, while the EIB provided technical assistance in 2013 under the JASPERS program to review the feasibility study for certain railway sections, it did not finance the construction or modernization of the Novi Sad station.
The technical assistance from the EIB, part of an advisory program funded by the European Commission and EIB, was discontinued by mid-2015 when the project was handed over to other parties. The EIB also clarified that the Novi Sad station was not included in the scope of this technical support.
EIB’s role in other railway projects
Although the EIB is not involved in the Belgrade-Novi Sad railway project, it has financed other significant railway projects in Serbia. These include the Nis-Dimitrovgrad railway, with a loan of 134 million euros granted in 2018 to modernize the Sićevo-Dimitrovgrad section and build a bypass north of Niš. Another notable project, the upgrade of the Belgrade-Nis railway, received a loan of 550 million euros in December 2022.
The EIB also contributed to earlier railway renewal projects, such as the 2006 loan for the “Railway Renewal Project II,” which aimed to modernize priority railway lines along Corridor X, and the 2002 financing agreement with the Federal Republic of Yugoslavia for railway reconstruction.
Investigations into EU funds misuse
The European Public Prosecutor’s Office (EPPO) is currently investigating potential misuse of EU funds related to the Novi Sad railway station reconstruction. The EPPO’s investigation was triggered by a private complaint and aims to verify if EU funds or EIB loans were misused in the project. While the EPPO has confirmed the ongoing investigation, it has not provided additional details to safeguard its outcomes.
In addition to the EIB’s lack of involvement, the EU has stated it did not finance the station’s reconstruction or related railway works. However, the EU did contribute to earlier feasibility studies and environmental assessments for the railway’s modernization.
Funding from other sources
The Serbian government has secured loans from China and Russia to finance various sections of the railway reconstruction. In 2017, Serbia entered into a loan agreement with the Chinese Export-Import Bank, which provided a loan of approximately 297 million dollars for the Belgrade Centar-Stara Pazova section. A second loan of 988 million dollars was granted for the Novi Sad-Subotica-Kelebija section in 2019.
Additionally, in 2019, Serbia signed an agreement with Russia for a loan of 172.5 million euros to finance the construction of railway infrastructure, including a dispatch center for managing train movements in Serbia. Prior to this, in 2013, Russia granted Serbia an 800 million dollar loan to finance various railway projects, including the modernization of the Stara Pazova-Novi Sad section.
While the EIB was not involved in the Belgrade-Novi Sad railway line, funding for the project has come from multiple other international sources.
