The European Bank for Reconstruction and Development (EBRD) is extending a senior loan of up to €30 million to Željeznički Prevoz Crne Gore a.d. (ZPCG), Montenegro's passenger train operator. This loan, guaranteed by the Montenegrin government, will facilitate the purchase of three new electric multiple-unit (EMU) trains, enhancing the country’s rail network.
These new EMU trains will replace outdated, energy-inefficient locomotive-hauled trains, improving the comfort, quality, and reliability of transport services across Montenegro. The Montenegrin government has prioritized upgrading rail passenger services as part of its strategy to promote a shift from car travel to rail transport, thus supporting sustainable development.
The project will receive technical assistance to aid implementation and procurement, funded by €325,000 from the EBRD’s Shareholder Special Fund. Additionally, the EU Reform Facility will provide technical assistance and funding to enhance ZPCG’s corporate governance practices, standards, and public service contracts.
The loan agreement was signed in the presence of Montenegrin Finance Minister Novica Vuković, Transport and Maritime Affairs Minister Filip Radulović, ZPCG Executive Director Ilinka Pavicević, EBRD Head of Montenegro Remon Zakaria, and EBRD Director, Head of Infrastructure for Europe, the Middle East, and Africa Sue Barrett.
Minister Vuković highlighted the EBRD's long-standing partnership with Montenegro, stating, "The EBRD has been a strategic partner for many years, investing over €800 million across various sectors, including traffic infrastructure. This loan will enable the purchase of new EMU trains, replacing old, energy-inefficient sets and significantly reducing carbon emissions by shifting from road to rail transport. This environmentally friendly approach is essential for Montenegro’s progress towards full EU membership."
Ilinka Pavicević, Executive Director of ZPCG, expressed excitement about the modernization project: "This €30 million loan from the EBRD will allow us to purchase new electric trains, improving the quality of railway services in Montenegro for the first time in almost 13 years. Following the loan and guarantee agreements, we will select consultants and conduct an international tender for the procurement of new trains, keeping the public informed throughout the process."
Sue Barrett emphasized the EBRD's commitment to Montenegro’s railway sector: "This loan demonstrates our ongoing support for better quality rail services and green transport. It aligns with our green economy goals and supports Montenegro’s economic and regional integration."
Remon Zakaria noted the benefits of the new EMU sets: "These new trains will improve the safety, quality, and comfort of ZPCG's services, reducing energy consumption and emissions. This transition supports Montenegro's sustainable development and commitment to lowering its carbon footprint. We believe this loan will transform Montenegro’s railway services, benefiting both the operator and passengers."
Since joining the EBRD in 2006, Montenegro has seen over €800 million invested in 86 projects by the Bank, focusing on competitiveness, the green transition, and regional and global market integration.
