Serbia, EIB sign EU grant for Belgrade – Nis railway

The document was signed by EIB Vice President Lilyana Pavlova, Serbian Minister of Construction, Transport and Infrastructure Goran Vesic, European Integration Minister Tanja Miscevic and Railways of Serbia Infrastructure General Manager Nebojsa Surlan at a ceremony also attended by Serbian Prime Minister Ana Brnabic and head of the EU Delegation to Serbia Emanuele Giaufret.

Only a month after the first grant was signed, EIB Global signed a second EU grant for 174.6 million euros for the subsection Paracin – Trupale – Medjurovo rail route, part of an EU financial package totaling 2.2 billion euros for the Belgrade – Nis section of the Railway Corridor X, said the EIB.

It noted that this project is an important part of the Economic and Investment Plan for the Western Balkans, and of the Team Europe Initiative.

The package also includes a 1.1 billion euro EIB loan and a 550 million euro loan from the European Bank for Reconstruction and Development (EBRD).

The funds will enable the upgrade and modernization of 230 km of railway. This will enable travel speeds of up to 200 km/h between Belgrade and Nis, increase trade flows and stimulate economic growth along the route, said the EIB.

Serbian Prime Minister Ana Brnabic said Serbia is truly grateful to its partners from the EIB for supporting its strategic goal, which is EU integration, and for supporting Serbia’s economic growth and productivity by providing the necessary funds for various infrastructure projects with regional impact.

“The Belgrade – Nis railway section is just such a project, as is the Paracin – Medjurovo subsection for which the investment grant was signed today. Its construction will facilitate travel for people in Serbia and better connection with the region,” said Brnabic.

EIB Vice-President responsible for the Western Balkans Lilyana Pavlova explained that the signing of the grants proves the commitment of the EU and its institutions to delivering new, upgraded railways between two pivotal cities in Serbia, linking the country to the region — and further to the EU, as this route is part of the pan-European Railway Corridor X.

“By mobilizing extensive financial and technical assistance within Team Europe, we want to help Serbia integrate into other European rail networks and provide multimodal transportation options for the benefit of its people, environment and economy,” said Pavlova.

EU Ambassador to Serbia Emanuele Giaufret said the new EU-financed railway changes realities on the ground in a positive way, and leads to a new future.

“While it currently takes almost a whole working day to travel from Belgrade to Nis, once the project is finished, it will take only one hour and 40 minutes. This is the time it might take to watch a nice film on the way. This project enables a future in which people are better and more closely connected within Serbia, but also within Europe and the region. This new railway will also create many new jobs and stimulate economic growth,” said Giaufret.

In the last 10 years, the EIB has supported the rail sector with more than 39 billion euros globally, helping to construct or upgrade almost 2 000 km of tracks and 304 stations.

As a lead financier of strategic railway routes in the Western Balkans, the EIB has invested over 1.2 billion euros in the region’s rail sector, supporting regional cooperation and connectivity, said the EIB.