JSC Serbia Railways - I



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 vertically integrated JSC Serbian Railways. The existing loan is being restructured to reassign loan proceeds to the operating companies established in August 2015 - EUR 91.5 million to Infrastructure of Serbian Railways JSC (project number 48409) and EUR 3.5 million to Srbija Voz JSC (project number 48410).

The EUR 91.5 million sovereign guaranteed loan to Infrastructure of Serbian Railways will be provided by the EBRD to finance rehabilitation and modernisation of railway infrastructure, including track modernisation within vicinity of Belgrade, track renewal and rehabilitation of electrical infrastructure on selected sections on Corridor X, procurement of maintenance machinery and modernisation of the passenger service system within the Belgrade Node.

As part of the restructured project, the EBRD will also finance the rehabilitation of five passenger EMUs that are currently in operation, which will be implemented by Srbija Voz JSC.

Project Objectives

To enhance the speed and reliability of passenger and freight rail services by improving the quality of rail infrastructure. The project also contributes to continued support the Government of Serbia's 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


Infrastructure of Serbian Railways JSC, a state-owned enterprise responsible for the management of national railway infrastructure established in August 2015 as a result of the unbundling of the vertically-integrated JSC Serbian Railways.

EBRD Finance Summary

EUR 91,500,000.00

The EBRD reallocates EUR 91.5 million of the existing sovereign guaranteed loan of EUR 95 million originally provided to JSC Serbian Railways, to Infrastructure of Serbian Railways JSC. Technical cooperation funds are also being provided (see below).

Total Project Cost

EUR 110,000,000.00

Environmental and Social Summary

Categorised B (2008 ESP). Environmental and social (E&S) due diligence for the project included an environmental and social analysis of the proposed project components and review of the organisational developments within the Company to manage associated environmental, social, health and safety risks 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 initial project has been updated to structure the project to meet the Bank's PRs and reflect the organisational changes, with separate ESAPs for Infrastructure of Serbian Railways JSC and Srbija Voz JSC. It has also reassigned tasks and updated project implementation schedules.

Requirements of the ESAP include: EHS provisions incorporated 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.
Infrastructure of Serbian Railways 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 400,000.

Company Contact Information

Mr Dusan Garibovic, Director General
+381 11 3616841
+381 11 3616841
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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