Serbia is borrowing 102 million euros from the EBRD and the French Development Agency to improve the railways

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Serbia will borrow 102 million euros this year in order to increase the efficiency and safety of the railways, but also to improve their management.

These funds are provided for the first phase of the program. We will borrow half of the money from the International Bank for Reconstruction and Development, which is part of the World Bank, for 12 years, with an interest rate of 0.65 percent and a six-month Euribor. For the remaining 51 million euros, we will borrow from the French Development Agency.

The borrowed funds will be used for the reconstruction of railways, preparation of technical documentation for investments in the next phases of the program, but also for the improvement of railway crossings throughout Serbia.

– In order to ensure the long-term sustainability of the Government’s ambitious railway investment plan and to ensure systematic, transparent and objective planning of investments in infrastructure maintenance and renewal, this component will finance the introduction of the Asset Management System.

Part of the funds will be spent on the implementation of sectoral reforms through institutional capacity building and the introduction of modern management and access systems. The third component of the program is the establishment of an environment for further modernization of the railway.

– This component will finance measures for the protection of the vulnerable and the poor and the strengthening of sectoral opportunities for sustainable development and job creation – the authorities assure.

– The focus will be on the use of information technologies in railway transport, which is still in its infancy, and on deepening knowledge about market potentials and developing strategies for attracting unconventional users. Three driving elements will be supported – an intelligent railway and safety management system, integration with other modes of transport and urban areas, and optimization of market potential in the railway sector.

Serbia will also borrow 100 million dollars from the International Bank for Reconstruction and Development, ie about 82 million euros, for improving the efficiency of the public sector and green recovery. The aim is to address issues of transparency in the public sector and efforts to increase resilience to future shocks and risks associated with climate change, as well as to address the issue of air pollution, Novosti reports.