Golubovci - Bar Rail Reconstruction Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a sovereign loan of up to €50 million to Montenegro (the "Borrower") for the benefit of Montenegro Railways Infrastructure Company ("ZICG", the "Company", or the "Client"), the state-owned enterprise responsible for the railway infrastructure to finance the reconstruction of approximately 39 km of open single-track electrified railway line between Golubovci and Bar (the "Project").

The Golubovci-Bar rail line is part of rail Route 4 of the Western Balkans Core Network which connects Port of Bar in Montenegro with the Serbian border and an indicative extension of Trans European Transport Networks ("TEN-T") in the region. The Project is co-financed with the European Investment Bank ("EIB") and the European Union ("EU") through the Western Balkans Investment Framework ("WBIF").

Project ID 55166

Status Exploratory

Location

Montenegro

Business Sector

Transport

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Marina Boskovic
kabinet.id@zicg.me
38220441403
https://www.zicg.me
Trg golootockih zrtava br. 13, 81000 Podgorica

Project ID 55166

Status Exploratory

Location

Montenegro

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

22 Jul 2026

Disclosure date

23 Mar 2026

Project Description

Project Objectives

1. Promote Montenegro's connectivity and its economic development and regional integration.

2. Support development of a greener and more sustainable transport by promoting modal shift.

Transition Impact

ETI score: 67

The expected transition impact of the project includes the following objectives:

Well-governed - a) support the establishment of the Railways Agency as a new independent economic and safety regulator in the rail sector, and b) support the Client to achieve industry accepted standards for cyber resiliency and/or higher cybersecurity/data protection regulatory compliance (e.g., ISO 27001, NIS and/or GDPR compliance or equivalent).
Green - The percentage of EBRD use of proceeds that supports a green economy transition and therefore qualifies as GET finance exceeds 60 per cent.

Client Information

MONTENEGRO SOVEREIGN

ZICG is a joint-stock company responsible for the railway infrastructure in Montenegro.

EBRD Finance Summary

EUR 50,000,000.00

EBRD Financing of up to EUR 50 million.

Total Project Cost

EUR 225,600,000.00

Total project cost is EUR 225,6 million.

Additionality

The Bank's additionality is derived from i) provision of long-term financing, which is not accessible from commercial sources in the country to match the life of infrastructure investments; ii) promotion of international procurement and environmental and social ("E&S") standards.

Environmental and Social Summary

Categorised A (2019 Environmental and Social Policy ("ESP"). The Project involves reconstruction of 39km existing single-track electrified rail line between the port of Bar and Golubovci that is crossing a sensitive protected area of international, regional and national importance Skadar Lake. The Project aims to improve rail safety, energy performance and passenger service quality, while ensuring inclusive access, especially for people with reduced mobility. Reconstruction and modernization work includes track, substructure and slope stabilization, modernization of several railway stations, level crossings safety enhancements along the route, and power supply modernization. Several bridges and tunnels, including 6km Sozina Tunnel and Tanki Rt bridge, are funded by the EIB and are Associated Facilities for the Project that would be managed in line with the objectives of the EBRD Performance Requirements ("PRs") and international best practice. Modernization take is almost entirely within the existing railway corridor allowing minimizing the need for new land acquisition and related footprint environmental impacts.

The Project required an international Environmental and Social Impact Assessment ("ESIA") commenced by independent WBIF-funded consultants in 2024 in line with the EBRD PRs and EIB E&S Standards. ESIA is supplementing the national Environmental Impact Assessment ("EIA") that was prepared in 2023-24, and following public consultations EIA was approved by the competent authorities in May 2025. A Critical Habitat Assessment ("CHA") has been undertaken in 2025 by EBRD-funded biodiversity consultant. A comprehensive ESIA package includes ESIA report, Environmental and Social Management Plan ("ESMP"), Safety Risk Assessment, Critical Habitat and Priority Biodiversity Features Assessment, Biodiversity Management Plan ("BMP"), Resettlement Framework ("RF"), Environmental and Social Action Plan ("ESAP"), Stakeholder Engagement Plan ("SEP"), and Non-Technical Summary ("NTS"). The package has been prepared in English and Montenegrin and disclosed for 120 days for public review and comment prior to Board on the Company's and Bank's websites. Additionally, in line with SEP, the hard copies of SEP and NTS in Montenegrin language will be available for local residents and stakeholders at the local municipalities in Zeta/Golubovci and Bar. ESIA consultation meetings will take place at Project locations during the disclosure period, and a Project Consultation Report ("PCR") will be prepared at the end of the 120 days period and disclosed publicly.

ESIA studies included review of previous technical studies by KfW, scoping, socio-economic impact assessment in the Project area and region, analysis of alternatives, baseline and assessment of air, noise and vibration impacts, preliminary safety risk assessment, biodiversity impact assessment, and climate change impact assessment, as well as assessment of the cumulative impacts. Client's E&S capacity is limited and requires strengthening and development of its E&S management systems in line with PR1 to support implementation of the agreed Project commitments. Labour and working conditions requirements, including contractor management and worker grievance mechanisms, are aligned with EBRD PR2 and managed through contractor obligations embedded in procurement documents. Occupational health and safety ("OHS") is a key focus due to the nature of railway works, with risks managed through OHS plans, training and supervision. This is further mitigated via the implementation of the ESAP and ESMP commitments and the post-signing implementation PIU support and works supervision.

Crossing of the sensitive protected area of international, regional and national importance Skadar Lake will require careful management of impacts to critical habitat species and priority biodiversity features ("PBFs"). Biodiversity assessment concluded that the risks are unlikely to be significant if the construction impacts are well managed. CHA and Biodiversity Management Plan has been prepared for the Project and will need to be updated and implemented in line with ESAP by the Client and their Contractor 6 months prior to the start of construction, including pre-construction biodiversity surveys, seasonal restrictions on works. Construction phase risks are expected to be managed in line with GIP and timing of works. Operational risks are not material, as the speed of the train will not be increased over Skadar Lake causeway minimizing the collision risk for wintering birds. Overall, after the implementation of the mitigation hierarchy, impacts to all species and habitats are managed. The opportunities for net gain have been identified and included in the final revision of the BMP. Relevant measures have been included in the ESAP and ESMP for the Project to align with PR6 requirements. For Sozina Tunnel as Associated Facility, biodiversity aspects will be managed in line with GIP and objectives of PRs (e.g. bat surveys).

Broader environmental impacts will be mainly construction-related including air emissions, dust, noise, waste generation, fuels and chemicals for equipment, pollution risks to surface and groundwater, impact from works near the embankments i all assessed and addressed through mitigation measures. Construction E&S Management Plans to be implemented by contractors, including spill prevention and water protection measures, waste management procedures and hazardous materials management procedures, and emergency response procedures. ESAP includes relevant measures for both construction and operation phases.

ESDD confirmed that the Project does not trigger any physical resettlement. However, restrictions on the land use along the railway corridor due to safety buffer zones and closure of several informal crossings would potentially cause economic displacement and access restrictions. Detailed design can still be subject to some modifications by the engineering and construction contractor with the micro sitings of the crossings location and temporary construction areas defined at the later stage. Therefore, the ESIA disclosure package includes an umbrella Resettlement Framework outlining Project commitments on the Client side related to land acquisition process and establishes EBRD PR5 requirements. Once the detailed design is completed, the Client with the support of the PIU consultant will need to develop a dedicated Resettlement Plan (RP) considering all land use restrictions and impacts derived from safety measures. The RP is required by ESAP prior to construction with EBRD review and no objection.

Construction phase is expected to take place during 2026-2030, and all procurement under the Project will be managed by EIB. The E&S management provisions and final ESMP/BMP requirements will be integrated into tenders and the works' contract conditions. The client is required to carry out pre-construction follow-up with the local municipalities and stakeholders to ensure elimination of unauthorized level crossings and further reduce risks from unauthorized access to the rail track by the public. Given spatial constraints around the causeway, design solutions will be closely coordinated by the Client and the contractor with local authorities and stakeholders. ESAP requires design alignment with EU and Montenegrin law prior to construction. In line with the rail and road Safety Risk Assessment Study conducted as part of ESIA, the ESAP requires: (i) establishing safe pedestrian crossings/walkways, (ii) community education and improved warning signs, and (iii) enforcing compliance in coordination with local authorities/stakeholders.

The ESIA package includes information on the public consultation undertaken during the national EIA process as well as scoping and targeted stakeholder engagement carried out by ESIA consultants in 2024-2025. Overall, the local community supports the Project, viewing it as a solution to their concerns, such as operational safety, incident prevention and level crossings safety. Additionally, ESIA covers the following issues: limited extent of land acquisition along the railway corridor; temporary or permanent access restrictions after the railway reconstruction due to the closure of multiple unauthorized crossings, and especially in those sections where there are residential and tourist areas (Virpazar, Bistrice, Vranjina, Sutomore, Šušan, and Bar); protection of cultural-historical sites such as Lesendro fortress and continuity of access; need for consistent and transparent Project disclosure and engagement including overall benefits for the local communities and quality of railway services. To ensure that Project affected people and broader Project stakeholders are engaged into a meaningful consultation and receive timely Project updates, a dedicated SEP has been developed covering all project phases to be implemented by the Client.

A Project implementation support consultant will provide oversight of ZICG Project Implementation Unit ("PIU") and their contractors on implementation of ESAP and ESMP commitments, and an independent engineer will also provide works supervision services. The Bank will monitor the Project's E&S performance and compliance with EBRD PRs through annual reports from the Client and implementation of the ESAP. The Bank may also undertake monitoring site visits, if deemed necessary.

Technical Cooperation and Grant Financing

Supporting the Client in preparing for ISO 27001 accreditation, which includes assistance in formulating required documents for ISO 27001 accreditation, designation of a roadmap for implementing needed controls, and preparation of a concluding audit.

Company Contact Information

Marina Boskovic
kabinet.id@zicg.me
38220441403
https://www.zicg.me
Trg golootockih zrtava br. 13, 81000 Podgorica

PSD Last Updated

23 Mar 2026

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project ID 55166

Status Exploratory

Location

Montenegro

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

22 Jul 2026

Disclosure date

23 Mar 2026

Project description

The Project will finance comprehensive rehabilitation of the Bar-Golubovci railway line, which represents a part of the strategic railway route / SEETO Rail Route 4 from the Port of Bar, Montenegro to Vrbnica, Serbia (the “Project”). Railways Infrastructure of Montenegro (“ZICG”), a majority state-owned railway maintenance company in Montenegro, is a Beneficiary and Implementation Agency with an overall responsibility for railways management, reconstruction and capital investments.

The Project will involve reconstruction of about 39km long Bar-Golubovci section comprising of open single-track electrified railway line, station tracks and shunting tracks, including reconstruction of several rail stations and stops, the associated power infrastructure modernisation, signalling, bridges and tunnels. Sozina tunnel and Tanki Rt bridge are the Associated Facilities and will be part of other EIB-financed projects. The project is expected to enhance operational reliability of the route, improve rail safety, efficiency and accessibility, adapt to climate change, and improve railway line capacity in terms of cargo and passenger traffic.

ESIA disclosure package

Environmental and Social Impact Assessment (ESIA)
Environmental and Social Management Plan (ESMP)
Safety Risk Assessment
Critical Habitat and Priority Biodiversity Features Assessment
Biodiversity Management Plan (BMP)
Resettlement Framework (RF)
Non-Technical Summary (NTS)
Stakeholder Engagement Plan (SEP)
Environmental and Social Action Plan (ESAP)

Download zip package in English
Download zip package in Montenegrin

Full ESIA availability

Full ESIA documentation is available locally at:

ŽICG, Trg golootočkih žrtava br. 13, 81100 Podgorica https://zicg.me/projekti

Municipality of Zeta, Glavna gradska ulica broj 89 Anovi, 81304 Golubovci
https://Zeta.me/

Municipality of Bar, Bulevar Revolucije 1, 85000 Bar, Crna Gora https://bar.me/

And

EBRD Resident Office in Montenegro: Moskovska 2/b, 81000 Podgorica, Montenegro Tel: +382 20 237 173

And

Client website: https://zicg.me/projekti

Enquiries

Environmental or social enquiries

Željeznička infrastruktura Crne Gore - ŽICG d.o.o. Podgorica
Address: Trg golootočkih žrtava br. 13, 81100 Podgorica
Rekonstrukcija željezničke trase Golubovci - Bar
Attn: Tamara Todorović
Email: prigovor@zicg.me
https://zicg.me/kontakt

General enquiries

Marina Boskovic
kabinet.id@zicg.me
+38220441403
https://www.zicg.me

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Golubovci - Bar Rail Reconstruction Project

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries