Montenegro has taken significant steps towards the reconstruction of the Golubovci-Bar railway, a project valued at approximately €175 million. This initiative is one of the largest EU-supported transport projects in the country and is now advancing toward the construction phase.
The government has approved a project agreement involving the Transport Ministry, Željeznička infrastruktura Crne Gore, and the European Bank for Reconstruction and Development (EBRD).
The Western Balkans Investment Framework is contributing €112.62 million in grants to the project, alongside a financing package that includes around €63 million in loans.
The scope of the works encompasses approximately 39.6 kilometers of open track, 17 kilometers of station tracks, 6 kilometers of shunting tracks, up to 10 stations and stops, and 11 bridges. Additionally, the project will enhance signalling, telecommunications, and traction-power infrastructure.
This railway upgrade is part of a broader effort to rehabilitate the Bar-Belgrade railway, which is vital for the Port of Bar. The port’s competitiveness in the region heavily relies on dependable inland rail connections.
The Port of Bar faces competition from other Adriatic ports that are better connected for cargo transport from Serbia and Central Europe. Challenges such as slow train speeds, outdated infrastructure, and operational limitations have hampered its logistical advantages.
The substantial grant component in this financing structure reduces Montenegro’s borrowing needs and highlights a financing model that may play a crucial role as the country seeks to enhance its infrastructure while managing public debt levels.
The primary challenge now lies in execution. Montenegro has been securing funding at a pace that exceeds its ability to complete design, procurement, and construction phases. Similar delays have been observed in various road, rail, and municipal projects.
The Golubovci-Bar railway reconstruction will serve as a test case for Montenegro in terms of converting increasing EU financial support into tangible infrastructure developments.
If completed on time, this upgrade has the potential to enhance freight reliability, bolster the Port of Bar’s operations, and reinforce Montenegro’s position within regional transport corridors.
With most of the financing already secured, attention now turns to how swiftly construction can commence.
