Montenegro Rail Infrastructure Emergency Rehab Project II



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

10 Dec 2009



PSD disclosed:

13 Aug 2009

Project Description

The EBRD is considering providing a €15 million sovereign guaranteed loan for completion of priority track rehabilitation programme on the main branch-line of the Montenegrin rail network, which provides a vital transportation link for the industrial Niksic region (the location of key industrial plants in the country supporting the main exporters: KAP/the aluminium plant and the Niksic steel mill) to the Port of Bar and the European rail network via Podgorica.

Transition Impact

The proposed Project will support the ongoing reform programme within the railway sector in Montenegro with the key medium term goals for the railway infrastructure defined as follows:

(a) implementation of effective track access charge payment mechanism following the adoption and publication of the Network Statement in January 2009;

(b) introduction of a transparent contractual relationship between Infrastructure, Rail Operations and the State;

(c) opening up of rail maintenance and rail real estate to partial or full private sector participation.

The Client

The Montenegro Railway Infrastructure Company (ZCG I) – the majority state owned manager of the rail track infrastructure in Montenegro.

EBRD Finance

€15 million sovereign guaranteed loan.

Project Cost

€17 million.

Environmental Impact

Screened B. The project is likely to result in environmental and social benefits and limited adverse impacts which will be identified and assessed through environmental and social due diligence. It will involve a review of the environmental and social performance of the existing operations and facilities, a review of the Client's capacity to manage environmental and social issues arising within the project, and an analysis of the environmental and social issues associated with the project investments. Any additional corrective measures and actions to ensure that the project meets the PRs will be incorporated in the Environmental Action Plan which was agreed in 2007.The Project Summary Document will be updated after the completion of the environmental and social due diligence, prior to Final Review.

Technical Cooperation

Project Preparation and Institutional Strengthening: The French Donor funds
Project Implementation Support: the Western Balkan Fund

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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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer ( is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

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