EBRD, EIB, EU back Belgrade-Nis railway upgrade with 2.2 bln euro

The EBRD is extending a loan of 550 million euro, its largest loan to Serbia to date, the European Investment Bank (EIB) is lending 1.1 billion euro and the EU contributing a 598 million euro investment grant, the EBRD said in a press release on Tuesday.

The EU has already approved 265 million euro worth of grants and the first tranche, amounting to 82.8 million euro, was signed on Tuesday, the EBRD said.

The EIB said in June 2022 that the total cost of the project is estimated at around 2.78 billion euro.

Following the overhaul, a train will cover the 230 km distance between Belgrade and Nis, in the country's south, in an hour and 40 minutes instead of the current six hours, as travel speed will increase to 200 km/h.

The EBRD noted that the improved rail link will also support Serbia's economic development, contribute to its local and regional connectivity and integration, and enhance the competitiveness of rail transport, especially for international and transit freight traffic.

The Belgrade-Nis link forms part of the Pan-European Corridor X one of the transport corridors connecting central Europe with Thessaloniki in Greece, and is part of the EU’s Economic and Investment Plan for the Western Balkans.

$ = 0.9367 euro