Serbia Voz Rolling Stock Acquisition



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

02 Oct 2019



PSD disclosed:

15 Jul 2019

Translated version of this PSD: Serbian

Project Description

Provision of a sovereign-guaranteed loan of up to €100 million to Serbia Voz, the state-owned railway passenger operator of Serbia.

The proceeds of the loan will be used to finance the purchase of approximately 18 new of Electric Multiple Units ("EMUs"), as a part of Serbia Voz rolling-stock renewal programme.

Project Objectives

Supporting the development and modernisation of the Serbian railway infrastructure and enabling the modal shift from road-based transport to passenger rail transportation. The project should also improve Serbia Voz's financial sustainability as the purchase of modern coaches will reduce its operational costs and increase its fare revenues.

Transition Impact

The Project is fully consistent with the Green Economy Transition ("GET") as promoting railway transportation and replacing old inefficient trains will lower carbon emissions. It will also make public transport more affordable and safer.

Improving the transport network also has an impact on economic governance. It supports regional economic connectivity, and also fosters competitiveness and governance by reforming selected state-owned enterprises. Improvements of the Client's corporate governance are progressing, in order to bring the Company in line with international best practice.

Client Information


Serbia Voz is the passenger operator society that was created in August 2015 through the unbundling of the vertically-integrated JSC Serbian Railways. It is fully owned by the Government of Serbia represented by the Ministry of Construction, Transport and Infrastructure.

EBRD Finance Summary

EUR 100,000,000.00

Total Project Cost

EUR 100,000,000.00

Environmental and Social Summary

Categorised B (2014). The Project will bring net environmental benefits related to minimised air emissions and energy efficiency related to replacement of end-of-life diesel fuelled passenger railway wagons with electric rolling stock. The Environmental and Social due diligence ("ESDD") has been carried out by ESD and comprised a review of the Environmental and Social Annual Report submitted in relation to transaction TPS Zemun Project (DTM 48405, signed in 2017) and meetings with Company management to discuss their corporate E&S systems.

The ESDD determined that the Company is in material compliance with national environmental, occupational health and safety and labour legislation and has made some progress in implementing the ESAP that was agreed in 2017. The Company made significant progress in relation to waste management, including hazardous waste, with the implementation of a revised Waste Management Plan. Through implementation of their Energy Management System in line with ISO 50001, the Company has undertaken a number of investments related to the replacement of heating oil with natural gas. Specific requirements for construction of the TPS Zemum have been included in the Tender Documentation, with construction anticipated to commence later in 2019. The implementation of a systematic approach to managing all environmental aspects is still outstanding; however, the Company has the internal capacity to implement EMS aligned with ISO 14001.

A H&S management system is in place with risk assessments, training, regular internal and external inspections, and fitness to work checks, incidents and near misses well documented. Since 2017, the Company's H&S performance has been good, with minor incidents only. The Company is subject to regular controls for operational safety from national authorities and has the capacity to operate in line with PR4. There is a H&S committee formed of management and trade union members to discuss, process and resolve H&S related grievances.

The company follows national labour laws and workers are free to join labour unions. The Company's retrenchment program was finalised in 2017, where four labour unions were actively involved with a monitoring oversight from the World Bank.

In line with PR5, resettlement of the isolated household related to TPS Zemun Project is almost finalised and an amicable agreement has been reached between the parties where cash compensation at full replacement value will be offered. Access issues related to some informal settlers have been resolved through design modifications. The company demonstrated constructive engagement and consultation with all key stakeholders in line with PR10.

As part of the current ESDD, the 2017 ESAP has been revised to strengthen requirements for the development of environmental management systems in line with international standards; implement procedures related to hazardous substances management, monitoring of contractors' and subcontractors' performance and implementation of a grievance mechanism. The Company will be required to ensure compliance with the Bank's PRs and also provide regular monitoring reports to the Bank.

Technical Cooperation

It is envisaged that TC support for this operation will be provided to assist the Company with:

(i) the procurement and the implementation of the Project to ensure timely and cost effective implementation and compliance with EBRD's Procurement Policies and Rules ; (ii) assistance for the implementation of further corporate governance improvements, including corporate governance specialist and legal consultants.

Company Contact Information

Djordje Prokic
Nemanjina 6 Beograd Serbia

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