The European Bank for Reconstruction and Development (EBRD) is providing a senior loan pf up to EUR 30 million to Montenegrin Railways Passenger Trains (Zeljezniiki Prevoz Crne Gore – ZPCG) for the purchase of 4-car EMUs (electric multiple units) to be used for operations across the railway network of Montenegro.
EUR 30.7 million is the total value of the project and the loan will be accompanied by the technical assistance deployed for project implementation support, revisions of the public service contract and enhancement of the company’s corporate governance standards and practices.
The loan will be fully guaranteed by the State of Montenegro. The new rolling stock will replace the old, energy inefficient loco-hauled train sets currently in operation.
ZPCG needs to acquire 4-car EMUs to improve the quality and regularity of services. The acquisition of new rolling stock has been identified by the Government of Montenegro as the key priority for the development of the railway services in the country. The new rolling stock will replace the old, energy inefficient locomotive-hauled train sets currently in operation.
Through the renewal of the rolling stock fleet resulting in estimated average savings of 18,145 tonnes of CO2 over the evaluation period from 2026 to 2037, which represents emission savings at the level of 53 per cent.
In 2021 the EBRD has also provided Montenegrin Railways Passenger Trains a sovereign loan of EUR 14 million for the procurement of two electric multiple units.
Zeljezniiki Prevoz Crne Gore Podgorica, or Railways Passenger Company of Montenegro, is a majority state-owned company and is the sole passenger train operator in Montenegro. The state owns 90.79 per cent of the company shares, while the remainder is owned by individual investors (4.58 per cent), investment funds (4.55 per cent) and other (0.08 per cent). In 2022, the company reported EUR 0.3 million of revenues and EBITDA of EUR 3.4 million.
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