The World Bank has announced a $65 million loan to Serbia for the modernization of its railway sector. This funding marks the second tranche of the Multiphase Program Approach (MPA) for the Railway Sector Modernization Project, aimed at enhancing the safety, efficiency and climate-friendliness of Serbia’s railway infrastructure.
Serbia has previously invested over $2.3 billion in expanding its railway network, with continued investments expected over the next five to six years. This latest loan underscores the importance of regular maintenance to protect the outcomes of these substantial public investments and ensure the quality and safety of vital transportation services.
Nikola Pontara, Director of the World Bank Office in Serbia, emphasized that this phase of the project focuses on boosting capacity for maintaining existing infrastructure, modernizing maintenance facilities, and improving asset management and planning.
Additionally, this phase will create opportunities for increased private sector involvement in developing intermodal facilities and enhancing connections at the “last mile” of the network.
As with the first phase, this new phase is jointly funded by the World Bank and the French Development Agency, reflecting a shared commitment to green transport and regional integration.
