The EBRD has approved a loan worth €42 million ($48.6m) for Serbia’s public operator, Srbijavoz, to improve Serbia’s international passenger railway network.

This is reported by the railway transport news portal Railway Supply.

EBRD backs Serbia’s €42m international rail expansion
Photo: The European Bank for Reconstruction and Development.

EBRD strengthens Serbia’s regional rail growth

Srbijavoz will lease 12 new sleeping cars intended for use on the busy Belgrade-Bar line between Serbia and Montenegro. Srbijavoz will use these trains on routes between Serbia and other EU member states later on. According to officials, this move will replace old trains that do not meet European railway standards and will improve passenger safety and comfort.

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The loan agreement was signed by Ljubiša Pejičić, Acting Director General of Srbijavoz, with representatives from the EBRD. The sovereign guarantee was co-signed by Finance Minister Siniša Mali and Deputy Head for Serbia, Jelena Čeperković. According to Pejičić, efficient trains will increase efficiency and sustainability for Serbia to meet EU transport policies.

The EBRD pointed out that it has invested over €10 billion on 394 projects in Serbia. These projects include programs relating to green mobility, logistics efficiency, and public infrastructure. Given that this new investment is in line with these programs, this project cements Serbia’s role as a transport hub in this region.

EBRD partnership fuels Serbia’s modernization process

Serbia has ramped up its rail transport development plans in recent years. Construction on a €153.6m railway bypass line for Niš, a significant point on Trans-European Corridor X, began in July 2024. This is a single-track electrified line that will decrease freight traffic.

Earlier in January 2024, Serbia and North Macedonia began construction on their first joint railway border crossing on Corridor X. The construction will be financed through a €5 million loan by the EBRD and a grant worth €2.5 million by the EU.

Such projects reflect Serbia’s commitment to bringing transport policy in line with EU norms. The overall effect of new rolling stock, improved infrastructure, and integration will enable improved economic connectivity and competitiveness in the Western Balkans.

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