By the guarantee contract issued by the government for the €20m loan the European Investment Bank (EIB) will issue to the Railway Infrastructure (ZICG), the infrastructure and safety in railway transport will be improved, finance minister Darko Radunovic said.
Radunovic, who signed the contract on behalf of the government, said it was €20m for the Railway Infrastructure III project, which the government issued a guarantee for in accordance with the 2017 budget.
The contract and the grant agreement were also signed by EIB Vice-President Dario Scannapieco and ZICG director Milan Colakovic.
“The total value of the project amounts to €24.8m. Accordingly, the Western Balkans Investment Framework Committee has approved €20m investment grant, while the funding sources for the remaining €4.8m will be defined during the project implementation,” Radunovic explained.
According to him, the project includes rehabilitation of the Bar-Podgorica-Vrbnica railway, in order to remove speed limits, increase reliability, reduce maintenance costs and improve the safety of rail traffic.
Scannapieco said that the EIB supported projects that contribute to the improvement of infrastructure and economy.
Scannapieco and the President of the Board of Directors of the Investment and Development Fund (IRF), Zoran Vukcevic, also signed a financial agreement worth €50m, which represents the first tranche of the planned €100m loan package aimed at supporting the small and medium-sized enterprises.
Scannapieco said that important contracts were signed, as well as the grant agreement, which show how important Montenegro is for the European Union (EU) and EIB.
