JSC Serbia Railways - II



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

30 Nov 2016



PSD disclosed:

16 Nov 2016

Translated version of this PSD: Serbian

Project Description

Reallocation of an existing sovereign guaranteed loan of EUR 95 million to JSC Serbian Railways (project number 42262). The reallocation follows a decision by the Government of Serbia to unbundle the vertically integrated JSC Serbian Railways. The existing loan is being restructured to reassign the loan proceeds to the following operating companies established in August 2015 i (1) EUR 91.5 million to the enterprise "Infrastructure of Serbian Railways JSC" (project number 48409) and (2) EUR 3.5 million to the enterprise "Srbija Voz JSC" (project number 48410).

The EUR 3.5 million sovereign guaranteed loan to Srbija Voz JSC will be provided by the EBRD to finance the rehabilitation and modernisation of five Electric Multiple Units which are currently in operation.

As part of the original project, the EBRD also finances the rehabilitation and modernisation of railway infrastructure and the acquisition of maintenance machinery, which will be implemented by "Infrastructure of Serbian Railways JSC".

Project Objectives

The project objectives focus on (i) the enhancement of the speed and reliability of passenger rail services and (ii) the provision of further assistance to the railway sector and the Government of Serbia for its rail reform programme.

Transition Impact

As originally envisaged, the project contributes to the transition process by focusing on the further support of the restructuring of the Serbian state railways, involving the commercialisation of nonutilised assets, the allocation of assets across operating companies and the establishment of contractual relations between these companies, third party access to the railway network and energy efficiency initiatives.

Client Information


The client for the project is Srbija Voz JSC, a state-owned railway passenger operator established in August 2015 as a result of the unbundling of the vertically-integrated company JSC Serbian Railways.

EBRD Finance Summary

EUR 3,500,000.00

The EBRD reallocates up to EUR 3.5 million to Srbija Voz JSC of an existing sovereign-guaranteed loan of EUR 95 million originally provided to JSC Serbian Railways. Technical co-operation funds are also being provided (see below).

Total Project Cost

EUR 4,200,000.00

Environmental and Social Summary

Categorised B (2008 ESP). The 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 refurbishment of passenger 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 railway sector 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 Srbija Voz 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.

Srbija Voz 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 restructuring of JSC Serbian Railways - EUR 400,000. Funding provided by the EBRD Shareholder Special Fund. All of the newly founded companies benefitted from this assistance.
  • Lender's Monitor - EUR 175,000. Funding provided by the Central European Initiative ("CEI"). 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 71,000.

Company Contact Information

Jugoslav Jovic, Director General
+381 11 3616 789
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
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)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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