World Bank Allocates $65 Million for Serbia's Railway Infrastructure Modernization

The new funding builds on Serbia's substantial investment in expanding its rail network, which has exceeded $2.3 billion in recent years.

Serbia is set to enhance the maintenance of its railway infrastructure with a new $65 million investment from the World Bank. This funding represents the second tranche of the Multiphase Programmatic Approach (MPA) for the Serbia Railway Sector Modernization Project, aimed at advancing the country’s rail sector to be safer, more efficient, and climate-friendly.

The new funding builds on Serbia's substantial investment in expanding its rail network, which has exceeded $2.3 billion in recent years. With ongoing efforts expected to continue for another five to six years, regular maintenance is crucial to protect these significant public investments and ensure the quality and safety of Serbia's critical transportation services.

“Through this phase of the project, we aim to enhance our capacity to maintain the existing rail infrastructure more effectively, modernize railway maintenance facilities, and improve asset management and planning,” said Nicola Pontara, World Bank Country Manager for Serbia. “This phase also presents an opportunity for greater private sector involvement in intermodal interventions and last-mile connectivity.”

Similar to Phase 1 of this MPA, this stage of the project is co-financed equally by the World Bank and the French Development Agency. This collaboration reflects the alignment of both institutions' priorities in promoting green transport and regional integration.

The investment is expected to play a crucial role in the ongoing modernization and maintenance of Serbia's rail infrastructure, contributing to the development of a more sustainable and efficient rail network.