Montenegro Rail Infrastructure Emergency Rehab Project II

complete

The EBRD is considering providing a €15 million sovereign guaranteed loan for completion of priority track rehabilitation programme on the main branch-line of the Montenegrin rail network, which provides a vital transportation link for the industrial Niksic region (the location of key industrial plants in the country supporting the main exporters: KAP/the aluminium plant and the Niksic steel mill) to the Port of Bar and the European rail network via Podgorica. The proposed Project will support the ongoing reform programme within the railway sector in Montenegro with the key medium term goals for the railway infrastructure defined as follows: (a) implementation of effective track access charge payment mechanism following the adoption and publication of the Network Statement in January 2009; (b) introduction of a transparent contractual relationship between Infrastructure, Rail Operations and the State; (c) opening up of rail maintenance and rail real estate to partial or full private sector participation. The Montenegro Railway Infrastructure Company (ZCG I) – the majority state owned manager of the rail track infrastructure in Montenegro. €15 million sovereign guaranteed loan. €17 million. Screened B. The project is likely to result in environmental and social benefits and limited adverse impacts which will be identified and assessed through environmental and social due diligence. It will involve a review of the environmental and social performance of the existing operations and facilities, a review of the Client's capacity to manage environmental and social issues arising within the project, and an analysis of the environmental and social issues associated with the project investments. Any additional corrective measures and actions to ensure that the project meets the PRs will be incorporated in the Environmental Action Plan which was agreed in 2007.The Project Summary Document will be updated after the completion of the environmental and social due diligence, prior to Final Review. Project Preparation and Institutional Strengthening: The French Donor funds Project Implementation Support: the Western Balkan Fund