Serbian Railways Launch Comprehensive Governance and Performance Improvement Program with EBRD Support

Serbian Railways Launch Comprehensive Governance and Performance Improvement Program with EBRD Support

(IN BRIEF) Serbian Railways Infrastructure JSC is embarking on a comprehensive program aimed at enhancing its corporate governance and operational efficiency, backed by the European Bank for Reconstruction and Development (EBRD) and donors. This initiative encompasses three technical assistance projects: the first focuses on improving corporate governance, the second aims to enhance operational performance, and the third, scheduled for early 2024, intends to establish an independent market regulator for the railway sector and integrate Serbia’s railways into the EU transport market. The technical assistance is financed by Italy (through the Central European Initiative) and the EBRD. These projects follow a significant €2.2 billion financial package provided by the EBRD, the EU, and the European Investment Bank (EIB) for the modernization of the high-speed rail link connecting Belgrade to Niš. Nebojša Šurlan, Director General of Serbian Railways Infrastructure, expressed gratitude for the support of the EU, EBRD, and EIB in modernizing Serbia’s railway transport, improving connectivity, and integrating Serbian railways into the wider European network. The goal is to modernize Serbian railways by the end of the decade, aligning with the expectations of citizens, the economy, and the Serbian state. The assistance package is viewed as essential for the comprehensive reform of the railway sector in Serbia, enabling integration into the EU’s transport system and achieving the full potential of railway infrastructure modernization in the country. Matteo Colangeli, EBRD Director for the Western Balkans, emphasized the importance of raising governance and operational standards in Serbian Railways Infrastructure, promoting a shift from road to rail, and investing in projects to improve rail travel in Serbia. The technical assistance package launch was attended by key representatives from Serbian Railways Infrastructure, the European Investment Bank, EBRD, European Union Delegation, Transport Community, Serbian Ministry of Construction, Transport and Infrastructure, and the country’s Directorate for Railways.

(PRESS RELEASE) LONDON, 29-Nov-2023 — /EuropaWire/ — The Serbian railway infrastructure manager Serbian Railways Infrastructure JSC is launching a comprehensive programme to improve its corporate governance and operational performance, supported by the European Bank for Reconstruction and Development (EBRD) and donors.

The package will include three technical assistance projects. The first project aims to help Serbian Railways Infrastructure to improve its corporate governance, while the second project will help boost the company’s operational performance.

The third technical assistance project will follow early in 2024. It will focus on helping the railway sector to establish an independent market regulator and to integrate Serbia’s railways into the EU transport market.

The technical assistance is financed by Italy (through the Central European Initiative) and the EBRD.

These projects follow the €2.2 billion financial package jointly provided by the EBRD (an investment loan of €550 million), the EU (an investment grant of €598 million) and the EIB (an investment loan of €1.1 billion) for the modernisation of the 230 km high-speed rail link connecting Belgrade to Niš.

Nebojša Šurlan, Director General of Serbian Railways Infrastructure, acknowledged the support of the European Union as the largest and most important donor, as well as the EBRD and EIB, in the modernisation of railway transport in Serbia, the improvement of connectivity and the integration of Serbian railways into the wider region and Europe.

He added: “All this will enable Serbian railways to become modernised by the end of this decade, in accordance with the needs and expectations of its citizens, the economy and the Serbian state and to take the place they deserve on the map of developed European railways.”

According to Šurlan, however, the modernisation of Serbia’s railway infrastructure is not enough to make the country’s transport system efficient, modern and organised.

“This is precisely why the package of technical assistance is extremely important for Serbia’s railway infrastructure. Based on the best examples of international practice, we will improve and strengthen the corporate governance, legal regulations and commercial operations of our company, as part of the comprehensive reform of the railway sector in Serbia. The projects we are starting today with the support of the EBRD will enable us to integrate Serbian railways into the transport system of the European Union faster and better. In that way, the comprehensive modernisation of railway infrastructure in Serbia will gain its full importance and value,” concluded Šurlan.

Matteo Colangeli, EBRD Director for the Western Balkans, said: “We are pleased to join forces with our European partners to help Serbian Railways Infrastructure raise standards further in terms of governance and operations. Accelerating the switch from road to rail is a key priority for the EBRD. As part of that, we are also financing projects to renew rolling stock, rehabilitate railway tracks and modernise regional train depots, with the aim of making rail travel in Serbia faster, more comfortable and more reliable.”

The technical assistance package was launched in the presence of Nebojsa Surlan, Director General of Serbian Railways Infrastructure, Alessandro Bragonzi, Head of Regional Representation for the Western Balkans at the European Investment Bank (EIB), and Matteo Colangeli, EBRD Director for the Western Balkans, as well as representatives of the Delegation of the European Union (EU) to Serbia, the Transport Community, the Serbian Ministry of Construction, Transport and Infrastructure, and the country’s Directorate for Railways.

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SOURCE: EBRD