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Serbia Cargo Rolling Stock Renewal



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

19 Oct 2022



PSD disclosed:

31 May 2022

Project Description

Provision of a sovereign guaranteed loan in the amount of up to EUR 43 million to Serbia Cargo ("SC"). The loan will finance procurement of new locomotives, wagons and overhaul of freight wagons.

Project Objectives

The Project will support both the development of the Serbian cargo railway transportation sector through the modernisation of the cargo rail fleet. It is expected to have a significant effect on the quality of cargo services, its competitiveness, useful life of the fleet and, ultimately, growth of rail cargo transportation in the country. By enabling the modal shift from road-based transport to cargo rail transportation and by replacing old inefficient rolling stock, the Project will bring a large environmental gains in terms of lowered carbon emissions.

Transition Impact

ETI score: 64

Transition impact stems from Well-governed and Inclusive qualities. The Project will result in improvements of corporate governance through a Corporate Governance Action Plan.

Inclusion will be part of the project where Bank's expertise will contribute to the assessment of functioning of sector skills counsel (SSC) with the aim to positively impact the future skilled labour supply for railways sector.

Client Information


Serbia Cargo provides rail freight transportation services in four principal lines of business bulk, wagonload, intermodal and transit. SC is fully owned by the Republic of Serbia and registered as a joint stock company.

EBRD Finance Summary

EUR 43,000,000.00

Total Project Cost

EUR 43,000,000.00


The Loan is a subsequent transaction with the same client in Serbia. Additionality sources include the following components: (i) financing structure; (iii) support to achieve higher standards; and (iv) Gender SMART.

Environmental and Social Summary

Categorised B (ESP 2019). The Environmental and Social Due Diligence (ESDD) for the Project was carried out internally by ESD and comprised of an environmental and social (E&S) assessment of the Project, a review of the current operations as it relates to the transport of goods and a review of the company's E&S capacity to manage risks and impacts.

ESDD included a review of corporate E&S arrangements by means of interviews, site visit to a maintenance depot in Belgrade and review of documentation related to existing E&S practices of the company.  ESDD confirmed a clear understanding of the E&S arrangements currently implemented.  Various E&S documents were shared including operating permits, environmental procedures, monitoring data and training records.  Serbia Cargo has various internal rulebooks, operational procedures, guidelines and formal mechanisms.  ESDD confirmed that the company has the organisational capacity for managing E&S risks and impacts with its current operations and plans to further develop their existing management systems to align with ISO 14001 and 45001 within the next few years. 

Serbia Cargo has an active Collective Agreement in place and a written internal Code of Conduct for employees.  Serbia Cargo has a well-established HR function which manages labour and working conditions adequately. Adequate H&S risk management and internal capacity has been established for managing risks to workers.  Policies and procedures reviewed during ESDD also align with good international practice.  Contractor and supply chain management is managed through standard tender documents and public procurement laws, although Serbia Cargo will need to strengthen their organisations arrangements to reduce E&S risk by assigning roles and responsibilities to key staff for oversight. 

Serbia Cargo engages with various stakeholders, and generally has an operational grievance mechanism in place.  A further formalisation of this would be beneficial including updating their complaints procedure on their website.  Serbia Cargo are exposed to a higher risk of derailments due to the condition of the existing infrastructure and plan to explore how this risk can be reduced using technology solutions.  An ESAP for the project has been developed and agreed with the company and includes: a review of internal capacity related to contractor management and supply chains; requirements to undertake an energy efficiency assessment and further develop the promotion of their existing operational grievance mechanism. The Bank will continue to monitor Serbia Cargo activities through annual E&S monitoring reports and site visits if necessary.

Technical Cooperation and Grant Financing

Total amount of EUR 300,500. Sources of funding are as follows: for i) technical and economic due diligence it will be funded by the Shareholder's Special Fund (SSF), ii) assistance for the implementation of corporate governance improvements will be funded by an international donor or SSF iii) Lender Monitor Advisor will be funded by an international donor or SSF and iv) health and safety assessment will be funded by ESD H&S Framework.

Company Contact Information

Mira Vukmirovic

Implementation summary

PSD last updated

31 May 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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