JSC Serbia Railways

Project number:


Approval date:

08 Nov 2011



PSD disclosed:

31 May 2011

Translated version of this PSD: Serbian

Project Description

The EBRD is considering providing a loan to finance the rehabilitation and modernisation of the Corridor X network in Serbia focusing on Component 1 - a section of track within the vicinity of Belgrade (Belgrade-Rakovica-Resnik) and Component 2 - track renewal on Corridor X. The European Investment Bank (EIB) may also finance a complementary investment focus on Corridor X.

This possible investment, when approved by the EBRD’s Board of Directors, will allow JSC Serbian Railways to enhance the efficiency of both passenger and freight services by improving standards and where necessary enhancing the capacity of the Corridor X track.

Transition Impact

The proposed project will contribute to the transition process by focusing on the on-going re-structuring of the company. This will be done through the commercialisation or sale of non-railway assets, further assistance in the establishment of the holding company structure and the implementation of the infrastructure contract, As part of the proposed investment, the funds will be used to support open access and energy efficiency initiatives.

The Client

The proposed project’s client is Joint Stock Company Serbian Railways (JSCSR), the state owned company overseeing both infrastructure and operations, including the transportation of passengers and freight by rail within Serbia.

EBRD Finance

The EBRD is considering providing a sovereign guaranteed loan of up to €95 million. Technical co-operation funds are also being provided (see below).

Project Cost

The total project cost is EUR 290 million.

Environmental Impact

Project Components 1 and 2 have been categorised B in accordance with the EBRD's 2008 Environmental and Social Policy.
Environmental and social (E&S) due diligence for the project included an environmental and social analysis of the proposed projects and review of the organisational developments within the Company to manage environmental, social, health and safety risks associated with the proposed Project in line with EBRD’s Performance Requirements (PRs). Site visits to a sample of the rail sections to be rehabilitated were undertaken and a number of meetings were also held with Company Representatives for JSC including members of the Centre for Sustainable Development (CSD).

Discussions with the CSD indicate that efforts to implement and improve management systems, as part of the reform and re-organisation of the Company are continuing. The ESAP agreed for the previous project with Serbian Railways has been updated to address the environmental and social issues identified during this project’s due diligence so as to structure the project to meet the Bank's PRs. Additional requirements included in the ESAP include: the appointment of a representative in the CSD to be responsible for the Environmental, Health and Safety and social monitoring of projects and contractors compliance; updated waste management procedures; a trackside and level crossing public safety awareness raising programme and a Project Health and Safety Plan for both project components.

Stakeholder engagement on environmental and social issues is being developed by the CSD. The ESAP requires that a Stakeholder Engagement Plan including a grievance mechanism be finalised and made available in the public domain.

The Company will provide to the Bank an annual environmental and social report, including updates on the implementation status of the ESAP.

Technical Cooperation

The following technical co-operations funds are envisaged as part of this project:

  • Lender’s Monitoring Advisor. €175,000 million. Financed by the Central European Initiative.
  • Assistance to the Project Implementation Unit. €1 million. Funding provided from the Western Balkans Investment Facility.

Assistance to the restructuring of JSCSR. €400,000. Funding requested from the Special Shareholder Fund

Implementation summary

This was the fifth loan supporting the JSC Serbia Railways. The facility consist of a sovereign guaranteed senior loan in the amount of up to EUR 95 million for the rehabilitation and modernisation of key sections of Corridor X, as well as providing further assistance to the Company in its restructuring process. In 2015, JSC Serbia Railways was split into four separate state-owned companies, and following that, the existing loan EUR 95 million to JSC Serbia Railway was split into two loans with two new obligors: the loan EUR 91.5 million to the newly created JSC Infrastructure, and the loan EUR 3.5 million to JSC Serbia Train. The loan to JSC Infrastructure consist of components of the loan financing works and procurement for rehabilitation of key sections of Corridor X, and JSC Train implemented rehabilitation of 5 Electric Multiple Units for passenger transport. As a result of implementation of the project, major transition objectives: (i) Demonstration of ways of successfully restructuring companies and institutions, (ii) Institute law and policies that promote market functioning and efficiency, and (iii) Setting standards for corporate governance and business conduct, has been achieved.  


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

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