Serbia to rake $7.7 billion to upgrade its rail infrastructure

Serbia plans to spend roughly $7.7 billion (€6.5 billion) to modernize and rebuild its railway system.

Serbian Prime Minister Ana Brnabic announced the move at the beginning of the Western Balkans Rail Summit 2021.

The funds will be used to upgrade about 1,000 kilometers of railway lines, improving connectivity both within the country and with its neighbors.

The government is working on project documents for a high-speed rail link between Belgrade and Nis, according to Prime Minister Brnabic. The initiative will be mostly funded by EU funds.

The railway lines Nis-Dimitrovgrad and Subotica-Szeged are also being planned, with construction likely to begin soon.

The Western Balkans Rail Summit 2021 took place in Belgrade, Serbia's capital.

The European Investment Bank, the European Bank for Reconstruction and Development (EBRD), and an international organization called the Transport Community collaborated to put on the event.

More investment in the Western Balkans' railway sector is needed, according to the EBRD, to improve connectivity and solve the climate change emergency.

The financial organization has put nearly €1 billion into the railway sector in the Western Balkans.

“Rail not only plays a fundamental part in any well-balanced transport system, it is the lynchpin for a sustainable transport approach and has a key role to play in solving today's climate emergency,” said Nandita Parshad, managing director of the EBRD Sustainable Infrastructure Group.

“We are committed to increasing our investments and enlisting the help of the private sector. Of course, we will continue to support the rail sector in the region with policy and technical assistance.”

The World Bank authorized a $62.5 million loan for a railway modernization project in Serbia earlier this year.

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