Ministry of Transport: 80 million euros in the modernization of the railway system, Montenegro participates with 4,53 million

The Ministry of Transport, Railway Infrastructure (ŽICG) and Railway Rolling Stock Maintenance have signed agreements on the transfer of grant funds provided through financial support from the European Investment Bank (EIB).

The Ministry of Transport announced that these contracts are intended for the implementation of the project to improve the railway infrastructure on the Bar - Vrbnica section, within the Orient/Eastern Mediterranean Corridor (R4 interconnection Montenegro - Serbia).

"A contract on the transfer of grant funds from the Western Balkans Investment Framework in the amount of 15,77 million euros, as well as a contract on the transfer of grant funds from the Western Balkans Investment Framework in the amount of 19,71 million euros, have been signed," the statement said.

The Ministry announced that the funds will be directed towards the modernization of the railway, including the rehabilitation of tracks and bridges, as well as improving the capacity of workshops for the maintenance of railway rolling stock. All contracts contain provisions on the strict purpose of using the funds, in accordance with European Union rules.

"In the coming period, the signing of an agreement on the transfer of funds from the loan agreement with the EIB, in the amount of 40 million euros, is expected, which will define the obligations of the Ministry of Finance, the Ministry of Transport, ŽICG and OŽVS," the statement specifies.

Total investments in the modernization of the railway system through this project will amount to 80 million euros, of which Montenegro will directly participate with 4,53 million euros.

"The Ministry of Transport thanked the European Investment Bank for its strong support. They added that they are convinced that the implementation of these contracts will significantly contribute to increasing the safety, reliability and efficiency of railway transport in Montenegro," the statement concluded.