World Bank Approves 62.5 mil USD for Improvement of Railway Infrastructure in Serbia
World Bank announced that it has approved 62.5 mil USD for the development of railway infrastructure in Serbia.
This credit support is the first phase of the project of modernization of railway sector in Serbia, whose total value is 400 mil USD, which includes restoration and modernization of 3,735 km of railways.
World Bank and French Development Agency jointly participate in financing the first phase of project by 50% each, so the total investment of that project phase amount to 125 mil USD.
“Serbia’s railway network is an important resource of this state and has the potential to play a strategic role in development of whole country and creation of new workplaces” said the chief of World Bank office in Serbia Stephen Ndegwa.
He added that the program of railway renewal in Serbia financed by the World Bank will improve the quality of infrastructure: increase safety, strengthen domestic and regional integration processes, accelerate economic growth and improve business environment in the region.
“Renewed and modernized railway network will become a key element of the transformation of multimodal transport in this country, and the whole program is completely aligned with the plan for accession of Serbia to the EU, including the commitment off the state for respecting the European Green Deal standards and climate neutrality, that predicts reduction of transport sector emissions for 90%” said Ndegwa.
World Bank estimates the “added ecological value” of modernization of railways in Serbia to be worth 111,28 mil USD.
It is also expected for utilization of railway network to grow by 5%, a 23% reduction in the number of fatal accidents on the railway network, and for the railway sector participation in the domestic transport of goods market to grow for 10% in the next ten years.
It is planned to invest a total of 3.3 bil EUR in the railway network in Serbia in the next decade, which included total electrification of railways, removal of speed limits due to the condition of tracks, increase of capacities of routes for transport of goods and improvement of railway asset management.
“This expected transformation is of key importance for encouragement of investments and economic growth in Serbia, reduction of climate changes brought by trade and transport sector, and better network for passenger and goods transport” says the World Bank announcement.