World Bank lends $ 62.5 million for modernization of Serbian railways
BELGRADE (Serbia), March 18 (SeeNews) – The Board of Directors of the World Bank has approved a loan of $ 62.5 million (€ 52.3 million) for the modernization of the railway sector in Serbia, a he declared.
The World Bank is cooperating with the French Development Agency with 50% co-financing of phase 1 of the project, leveraging aligned priorities such as green transport and regional integration and bringing the total investment for this phase to 125 million dollars, he said in a statement Wednesday.
The program, with an overall funding envelope of $ 400 million, focuses on an increase in network use of 5%, a reduction in rail fatalities by 23% and a 10% increase in the market share of the national rail freight transport over the next. 10 years, said the World Bank.
“The program will lead to better infrastructure, improved security, stronger national and regional integration, accelerated economic growth and an improved business environment in the region,” said Stephen Ndegwa, Country Director of the Bank. world for Serbia, in the press release.
The three stages of the World Bank project will include investments in infrastructure and asset management, sector institution building initiatives and modernization efforts, the World Bank noted.
According to preliminary assessments, the portion of the project that will result in mitigation or adaptation benefits for project beneficiaries, also known as climate co-benefits, is expected to exceed 89%, or $ 111.3 million.
With the intention of investing 3.3 billion euros in its rail network over the next decade, Serbia aims to fully electrify its rail lines, to fully implement the European rail traffic management system, to remove speed restrictions, improve the capacity of freight lines on the core network and improve the management of railway assets. This is well aligned with EU transport policy and the requirements of the trans-European network.
($ = 0.8373 euro)