EBRD launches a project to support Montenegro Railways Passenger Company (ZPCG)

The EBRD is supporting the modernisation of railway transport in Montenegro with a €13.55 million sovereign guaranteed loan to the Railway Passenger Company of Montenegro (ZPCG), the country’s passenger operator. The loan will address the company’s urgent modernisation and development needs. The funds will also help to support the overall reform of the country’s railway sector by undertaking further reform steps within the rail passenger segment. Specifically, this will include: the preparation of a Public Service Obligation contract and assistance with the adoption of formal Business Planning procedures within ZPCG to ensure transparent and affordable planning of operations and investments.

The sovereign guaranteed loan to ZPCG will be complemented by a dedicated technical cooperation assistance programme. As part of the new project, Germany will provide technical assistance in preparing the company’s institutional strengthening activities, while the EBRD’s Shareholders Special Fund will fund the procurement assistance..
“The EBRD is pleased to contribute to the modernisation of rail transport in Montenegro and to support improving the operational efficiency of ZPCG. This project represents another step in the progress of the country’s rail sector reform and improvement of safety standards,” said Marek Lorinc, Head of the EBRD’s Office in Podgorica.

“The Project is an important step to modernise the passenger rail services in Montenegro.  We hope to expand and improve our operations offering our clients better quality of service,” said Resad Nuhodzic, Director President of the Board of Directors of the Railway Passenger Transport of Montenegro (ZPCG). Overall, since the beginning of its operations in Montenegro the EBRD has invested over €100 million in various sectors of the country’s economy.

News source: EBRD link: article