A loan agreement between the Railway Infrastructure of Montenegro and the European Bank for Reconstruction and Development for Montenegro was signed

Published on 29. December 2022., News

Minister of Finance Aleksandar Damjanović, director of the European Bank for Reconstruction and Development for Montenegro Remon Zakarija and executive director Marina Bošković signed today a loan agreement between the Railway Infrastructure of Montenegro and the EBRD in the amount of EUR 11 million for the implementation of the project to purchase machinery for construction and electrical maintenance of tracks and new equipment for the auxiliary train.

On this occasion, a state guarantee was signed for the purposes of the mentioned credit arrangement for the same amount between the State of Montenegro and the EBRD.

The contracted amount of the loan amounts to a total of 11 million EUR, with a term of availability of loan funds of 3 years from the date of signing. The loan agreement stipulates a repayment term of 15 years, including a grace period of 3 years, with semi-annual repayments and a variable interest rate consisting of six-month EURIBOR and a margin of 1%.

As stated by the Ministry of Finance, the purpose of the project is to help ŽICG in financing the machinery for railway maintenance, which will be used for regular and safe maintenance of the complete railway network in Montenegro.

– The project consists of two components. The first one refers to the procurement of machinery for railway maintenance, including a machine for laying tracks, track maintenance equipment and small mobile equipment. The second component refers to consulting services to support project implementation and supervision of works for the first component. It is expected that the project will be implemented within two years from the date of entry into force of the contract – it is stated in the announcement.

The signing was attended by the members of the board of directors of ŽICG, the chairman of that board, Radovan Vukić and the assistant of the ID for investments, Dragan Radević, as well as the state secretary in the Ministry of Capital Investments, Miloš Rajović, local media says.