EU Invests €175.6M to Modernize Bar-Golubovci Rail, Boost Montenegro’s Green Transport

The EU-led investment in the Bar–Golubovci railway section represents a large-scale, strategic infrastructure project with both immediate transport-sector impacts and broader geopolitical resonance. Rail Route 4, part of the TEN-T Core Network, links Belgrade through Podgorica to the Port of Bar—so improvements here not only reduce travel times and increase capacity but also tighten Montenegro’s logistical and trade connections into the broader EU market. Accelerating train speeds and freight throughput can shift modal balance away from road, reducing emissions and improving efficiency, a core EU policy aim in its green transition.

Financially, the combination of grant and loan funding eases pressure on Montenegro’s public debt, although the state’s contribution and the EBRD loan imply that Montenegro retains significant fiscal stake and risk. The project totals ~€230.8 million, meaning cost overruns or delays could have material budgetary implications. It will be important for project contracts to include rigorous oversight, aligned with EU procurement, and for Montenegro to maintain consistency in technical, environmental, and safety compliance to ensure access to these funds, avoid penalties, or mitigate escalating costs.

Strategically, this investment underscores the EU’s commitment to integrating the Western Balkans via infrastructure and setting the groundwork for Montenegro’s accession ambitions. By aligning domestic infrastructure with TEN-T and broader EU regulatory frameworks, Montenegro strengthens its case in chapters related to transport, environment, and trans-European connectivity. The refurbishment of ageing assets—such as the Sozina tunnel, signaling, electrification networks—not only improves efficiency and safety but also reduces long-term maintenance liabilities.

However, several open questions and risks remain. How will Montenegro secure the technical and operational capacity for contractors to deliver to stringent EU standards? What is the timeline and phasing of the works: have all procurement and legal hurdles been cleared? There is also risk around environmental and social impacts along the corridor—especially in mountainous terrain and within tunnels. Finally, sustaining maintenance and operations post-construction (including rolling stock, trained personnel, safety systems) will be necessary to preserve the investment and realize projected passenger and freight gains.