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Serbia Cargo gets EUR 64m EBRD loan to expand and upgrade locomotive fleet - Serbia Business

Serbia Cargo gets EUR 64m EBRD loan to expand and upgrade locomotive fleet

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EBRD is considering reallocation of an existing sovereign guaranteed loan of EUR 100 million to Serbian Railways, approved by the Board on 1 September 2010. The reallocation follows a decision by the Government of Serbia to unbundle vertically integrated JSC Serbian Railways. The existing loan is being restructured to reassign loan proceeds to the operating companies established in August 2015 – EUR 36 million to Infrastructure of Serbian Railways JSC (project number 48883) and EUR 64 million to Serbia Cargo JSC (project number 48406).

The sovereign guaranteed loan in the amount of EUR 64 million to Serbia Cargo JSC will be provided by the EBRD to finance procurement of new electric locomotives and refurbishment of locomotives in the existing fleet.

The project objectives focus on the enhancement of the efficiency of freight services on Serbian railway network, through improved service quality and energy efficiency benefits offered by the new and refurbished rolling stock and provision of assistance to the railway sector and the Government of Serbia with the rail reform programme.

As part of the original project, the EBRD also finances a track renewal programme along the Corridor X railway line in Serbia, which will be implemented by Infrastructure of Serbian Railways JSC under related project number 48883.