May 27 (SeeNews) – Montenegro plans to take a 40 million euro ($43 million) loan from the European Investment Bank (EIB) to help finance an 80 million euro project for railway infrastructure reconstruction, the government in Podgorica said.
The finance ministry has completed negotiations with the EIB and finalised the text of the 40 million euro credit contract, the government said in a statement on Friday.
Once approved, the financing will be transferred to state-controlled railway infrastructure operator Zeljeznicka Infrastruktura Crne Gore (ZICG) and rolling stock maintenance firm Odrzavanje Zeljeznickih Voznih Sredstava (OZVS).
The EIB shall disburse the credit in up to 13 tranches, with the amount of each tranche being no less than 3 million euro.
The remaining financing will come from a 35.5 million euro grant from the EU’s Western Balkans Investment Framework (WBIF), while a further 4.5 million euro will be secured from own funds.
The project for the general railways overhaul also includes the rehabilitation of 13 steel bridges and tunnels, as well as the modernisation of depots and workshops.
($ = 0.921 euro)