Serbian Railways Corridor X - I



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

16 Nov 2016



PSD disclosed:

27 Oct 2016

Ttranslated version of this PSD: Serbian

Project Description

The EBRD is considering reallocation of an existing sovereign guaranteed loan of EUR 100 million to JSC Serbian Railways (project number 41125), approved by the Board on 1 September 2010. The reallocation follows a decision by the Government of Serbia to unbundle vertically integrated JSC
Serbian Railways. The existing loan is being restructured to reassign loan proceeds to the operating companies established in August 2015 - EUR 36 million to Infrastructure of Serbian Railways JSC (project number 48883) and EUR 64 million to Serbia Cargo JSC (project number 48406).

The sovereign guaranteed loan in the amount of EUR 64 million to Serbia Cargo JSC will be provided by the EBRD to finance procurement of new electric locomotives and refurbishment of locomotives in the existing fleet.

As part of the original project, the EBRD also finances a track renewal programme along the Corridor X railway line in Serbia, which will be implemented by Infrastructure of Serbian Railways JSC under related project number 48883.

Project Objectives

The project objectives focus on (i) the enhancement of the efficiency of freight services on Serbian railway network, through improved service quality and energy efficiency benefits offered by the new and refurbished rolling stock and (ii) provision of assistance to the railway sector and the Government of Serbia with the rail reform programme.

Transition Impact

As originally envisaged, the project contributes to the transition process by focusing on market liberalisation, which has been addressed through the adoption of the new railway sector structure; assistance to the rail regulator; implementation of access charges and a network statement; and the
provision of assistance to monitor energy use.

Client Information


The Client for this project is Serbia Cargo JSC, a state-owned railway freight operator established in August 2015 as a result of unbundling of the vertically-integrated JSC Serbian Railways.

EBRD Finance Summary

EUR 64,000,000.00

The EBRD reallocates up to EUR 64 million of the existing sovereign guaranteed loan of EUR 100 million originally provided to JSC Serbian Railways, to Serbia Cargo JSC. Technical co-operation funds are also being provided (see below).

Total Project Cost

EUR 77,000,000.00

Environmental and Social Summary

Categorised B (2008 ESP). The purchase and refurbishment of locomotives is unlikely to be associated with significant environmental and social (E&S) risks. Any potential adverse impacts are likely to be addressed through mitigation measures. The procurement of new locomotives is expected to have limited adverse environmental and social impacts.

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).

Discussions with the Company indicated 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 projects has been updated to structure the project to meet the Bank's PRs and reflect the organisational changes, with separate ESAPs for Serbia Cargo JSC and Infrastructure of Serbian Railways JSC. It has also reassigned tasks and updated project implementation schedules.

Requirements included in the ESAP include: EHS provisions included in tenders and contracts; traffic management plans; the preparation and implementation of a retrenchment plan in accordance with PR 2 in the event of collective redundancies and a Stakeholder Engagement Plan including a
grievance mechanism.

Serbia Cargo JSC 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-operation assignments were arranged prior to the loan restructuring, as part of the original project with JSC Serbian Railways:

  • Assistance to the Project Implementation Unit - EUR 297,000. Funding provided by the EBRD Shareholder Special Fund.
  • Assistance to the Rail Regulator - EUR 250,000. Funding provided by the German Technical Cooperation Fund of the Federal Ministry for Economic Affairs and Energy.
  • Implementation of Energy Management Information System - EUR 250,000. Funding provided by the Central European Initiative ("CEI").
  • Lender's Monitor - EUR 196,000. Funding provided by the Central European Initiative .

Additional funding has been made available from the EBRD Shareholder Special Fund for further assistance with the Project Implementation in amount of up to EUR 100,000.

A consultant has been engaged to deliver each assignment.

Company Contact Information

Katarina Nesic Rakovic, General Manager Office;;
+381 11 3618 461
+381 11 3618 461
6, Nemanjina St. 11000 Belgrade.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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