The National Assembly of the Republic of Serbia has approved a loan agreement for the second phase of its railway sector modernization project. This agreement, signed with the International Bank for Reconstruction and Development (IBRD) on August 23 and September 2, 2024, involves borrowing up to $65 million, supplemented by an additional $65 million from the French Development Agency (AFD).
The project’s second phase aims to maintain and enhance railway infrastructure through the acquisition of heavy machinery, modernization of facilities and the development of IT strategies for Serbia’s railway companies. It will also focus on strengthening sector capacities and promoting sustainability by fostering more environmentally friendly transportation options.
The loan features a three-year grace period, with repayment scheduled until 2035. It aligns with IBRD operational guidelines and a 2018 framework agreement with AFD, with a completion date set for June 30, 2029.
This phase builds on the accomplishments of the first phase, initiated in 2021, which prioritized improving the efficiency and safety of the railway network, contributing to the sustainability of Serbia’s transport system.
