More than 160 million for Kosovo railway project

The upgrade of Kosovo’s railways has taken a major step forward with works launched on Monday on the rail section from Fushë Kosovë to Mitrovica. Work to rehabilitate the country’s only international rail link is being financed by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the European Union (EU).

Once completed, the 149-kilometre rail link will connect Kosovo with Serbia to the north and North Macedonia to the south. It will enable an increase in travel speed to 100 km/h and safer passenger and freight transport.

Work will include the refurbishment of 35 kilometres of track and the upgrade of five railway stations, in line with Trans-European Transport Network (TEN-T) standards. This is the second of a three-phase rehabilitation project and follows work already underway on the section from Kosovo’s border with North Macedonia to Fushë Kosovë.

Financing

The investment is being financed with a 40 million euros EBRD loan to Kosovo’s national railway company, Infrastruktura e Hekurudhave të Kosovës (Infrakos), and a 42-million euros EIB loan. In addition, almost half of all project costs are expected to be covered by an EU investment grant of around 83 million euros through the Western Balkans Investment Framework (WBIF).

Neil Taylor, EBRD Head of Kosovo, said: “We are delighted to see that Kosovo is moving forward with the rehabilitation of its railway, the largest investment in the country’s transport infrastructure for decades. It will connect Kosovo with the region and beyond and will help boost economic opportunities and make travel easier, safer and greener for its citizens.”

Wider network

The Kosovo rail route 10 project is part of the Western Balkans core railway network and an extension of TEN-T, part of the EU’s wider efforts to promote transport connectivity in the Western Balkans.

The country’s rail system is in poor condition, with serious structural constraints that limit traffic to 30-70 km/h. Decades of underinvestment have led to the deterioration, similar to the rest of the region. Low speeds and the poor quality level of rail services have made road transport dominant.

The EU is supporting rail upgrades in the Western Balkans with a view to improving connectivity and promoting a modal shift from road to rail as a greener mode of transport.