The World Bank said on March 18 that it has approved $62.5mn to finance the first stage of a project to modernise the Serbian railway system.

The programme focuses on three key outcomes: an increase in network utilisation of 5%; a reduction of fatalities on the rail network by 23%; and, a 10% increase in the market share of national cargo rail over the next 10 years.

“Serbia is intensifying its focus on infrastructure development by increasing the safety, efficiency, environmental sustainability, and regional connectivity of its railway through an upgrade of 3,735 km of this network,” a press release said. 

“Phase 1 of the Multi-Phase Programmatic Approach for Serbia Railway Sector Modernisation Project was approved today by the World bank board of directors, providing $62.5mn of the programme’s overall financing envelope of $400mn.” 

It added that the World Bank is working with the French Development Agency to jointly co-finance Phase 1 of the project, bringing the total investment for this phase to $125mn.

The press release quoted World Bank country manager for Serbia Stephen Ndegwa as saying: “Serbia’s rail network is a major asset for the country with the potential to play a strategic role in the nation’s growth and job opportunities.”

“The programme will lead to better quality infrastructure, improved safety, enhanced in-country and regional integration, accelerated economic growth, and an improved business environment in the region… A renewed and modernised rail network will become an essential part of transforming multi-modal transport in the country and the programme is fully aligned with Serbia’s European Union accession agenda, including its commitment to the EU’s Green Deal and climate neutrality, which envisions a 90% reduction in transport emissions.“ he said.