Montenegro secures funding for EMU procurement

Montenegro rail passenger

The European Bank for Reconstruction and Development (EBRD) has provided Montenegro rail passenger operator, Željeznički Prevoz Crne Gore (ZPCG), a EUR 30 million loan to acquire three electric multiple-unit (EMU) trains.

The agreement was signed by the Minister of Finance Novica Vuković, Minister of Transport and Maritime Affairs Filip Radulović, Ilinka Pavicević, Executive Director of ZPCG, Remon Zakaria, Head of Montenegro for the EBRD, and Sue Barrett, Director, Head of Infrastructure for Europe, Middle East and Africa at the EBRD.

The procurement of new EMUs “is one of the largest investment projects related to the modernization of the rolling stock of Montenegrin railways. After almost 13 years, we have the opportunity to announce the purchase of new trains that will significantly improve the quality of the railway service in Montenegro,” the Executive Director of ZPCG said.

After the signing of loan and the guaranteed agreements, ZPCG will select the consultants for the project which will be carried out in accordance with the public procurement policy and rules of the EBRD Bank. This will be followed by the “the announcement and implementation of an international two-phase tender for the procurement of new trains,” Executive Director of ZPCG explained.

The new trains which will run across the country’s rail network, will replace the old, energy-inefficient, locomotive-hauled trains currently in operation and will improve the comfort, quality and reliability of transport services.

The project includes technical assistance to support project implementation and procurement, with EUR 325,000 in funding from the EBRD’s Shareholder Special Fund. In addition, the company will receive technical assistance support and funding from the EU Reform Facility to enhance its corporate governance practices, standards and public service contract.

The agreement signed between Montenegro rail passenger operator and the EBRD with the guarantee of the State, “will enable the purchase of up to three sets of four-part electric motor sets, which will be used on the entire railway network of Montenegro. Also, the project will support the development of the rail transport sector through the modernisation of the rolling stock, which will significantly reduce carbon emissions by switching from road to rail transport,” Montenegrin Minister of Finance said.

“Passengers can expect more reliable and punctual train services, leading to increased satisfaction and trust in the national rail system. Replacing the old, energy-inefficient, locomotive-hauled trains with new EMUs will significantly reduce energy consumption and, hence, emissions,” Remon Zakaria, EBRD Head of Montenegro said.

Montenegro rail passenger operator owns 11 locomotives, 7 electric trains, of which 3 Civity EMUs and 57 coaches.

Share on: