1. Government of Montenegro Ministry of Transport and Maritime Affairs
Podgorica, April 2013

2. I RAIL INFRUSTRUCTURE
Rehabilitation of railway line Bar – Vrbnica, according to the study Italferr: Technical and Financial Study for the rehabilitation of the Belgrade – Bar railway line
Railway Link Čapljina – Trebinje - Nikšić
Railway Link Pljevlje - Bijelo Polje – Berane-border with Kosovo
Restructing of railway system of Montenegro - Privatization

3. Ralway line Bar - Vrbnica
The Belgrade-Bar railway line (Е-79) was constructed and put into operation in phases, from 1958 to The Belgrade-Bar railway line has significant international and regional importance, especially for development of business affairs with Italy and South East Europe.
The line (Route 4) represents direct connection between ports located on the South Adriatic coast, Port of Bar and City of Belgrade – Pan European Corridors X and VII (Danube River) - connecting to TEN-T, as well as connection with all countries of Central and East Europe, considering the strategic position of the Serbian capital city.

4. Current Situation
The electrified single line Bar –Vrbnica has a length of km and was opened to traffic in The line is designed to support speeds ranging from 75 km/h to 120 km/h.
Railway border crossing station: Bijelo Polje and Prijepolje .
Technical and Financial Study for the rehabilitation of the Belgrade – Bar railway line is completed (Italferr, November 2010)

5. 51,6 km of tunnels and galleries 15.6 km of bridges and viaducts

6. Project Technical Elements
Object
Number
Length
Tunnel
106
51,6 km
Bridge
107
15,6 km
Other - landslides 7
1 km
Rock falls 28
4,9 km
Avalanches 8
0,9 km

7. Project Justification
EIRR 1,6%,
Time savings 5 hours,
Decreased costs for ordinary and daily maintenance by 30%
Removed bottlenecks bridges, tunnels, landslides, rock falls and avalanches,
Improved safety and security 35%,
Modal shift and intermodality 2 new terminals,
Ecology sensitive areas protection - National Park Skadar lake (9,717 km)

8. Project Justification
The financial analysis gives an overview of the financial flows of investment, the operating costs and the revenues over the lifetime of the project and it calculates the rate of return on the investment (IRR) and the net present value (NPV). The financial analysis focuses on the costs and revenues from the perspective of: infrastructure manager, operator of passenger trains and operator of freight trains. The result was positive for both countries.
The economic analysis encompasses more than just the considerations of the financial returns of the project, such as user benefits and external costs (air pollution, CO2 emissions and accidents). The economic results of the cost-benefit analysis are presented also in terms of benefit-cost ratio (B/C ratio), and are extremely positive for both countries.
Following a final sensitivity analisys, the Study demonstrated that the proposed investment is financial viable and economically beneficial.

9. Financial Analysis Total 138.971.050 Montenegro Year Million €
TYPE OF WORKS
MONTENEGRO
CIVIL ENGINEERING INFRASTRUCTURE
SUBSTRUCTURE AND PERMANENT WAY
BRIDGES
TUNNELS
LANDSLIDES
ROCKSLOPES
AVALANCHES
HYDRO-ENGINEERING WORKS
STATION BUILDING AND RELATED FACILITIES
17.396,880
TOTAL 1
ELECTRICAL INFRASTRUCTURE
ELECTRIFICATION
SIGNALING
TELECOMMUNICATIONS
94.540
TOTAL 2
TOTAL
,060
Montenegro
Year
Million €
Short-term scenario
to 2015
2011
2012
2013
2014
2015
Total 1
Medium-term to 2020
2016
2017
2018
2019
2020
Total 2
Total

10. What we have
Regular maintenance of infrastructure and traffic regulation € 6, mil per year (Budget)
loan from: EBRD – 10 € mil, EIB - € 34 mil
IPA 2007, 2009, 2010 and IPA III component - € 18,7 mil

11. What we will do from EBRD (III) in 2013
International tenders lasts till September 2013, and the works will be carried out in 2014:
WORKS – GENERAL REPAIR – Substructure reconstruction along the sections from Kolašin to Kos, and reconstruction of secondary station tracks in passing point Kos (estimated value: EUR 5m);
WORKS – RECONSTRUCTION OF 5 TUNNELS No. 187, 190, 193, 205 and 206 on the part of railway line Kos –Trebješica – Lutovo (estimated value: € 4 mil);
WORKS - RECONSTRUCTION OF 3 CULVERS and regulation of water in 4 bridge (estimated value: € 500,000.00);
DESIGN DOCUMENTS Preparation of design documentation for reconstruction of 18 tunnels along the railway line Vrbnica – Bar (estimated value: EUR 450,000.00)
REVISION – Technical control of prepared design documentation for reconstruction of 18 tunnels (estimated valu: EUR 50,000.00).

12. What we will do from EIB loan
Preparation of tenders for works of bridge Trebaljevo on the railway line Vrbnica –Bar (end of 2013)
Preparation of tenders for works of 15 steel bridges on the railway line Vrbnica –Bar (end of 2014)
What we plan to tender for IPA projects
12 slope repair the railway Vrbnica –Bar (December 2013);
Dismantling new substation Trebješica (September 2013).

13. What we need
Main repair (rehabilitation) of Vrbnica – Bar line, the part - Kolasin – Podgorica line (63,1 km)
Repair Kos Trebješica (6,74 km) mil €
Repair Trebješica-Lutovo (9,97 km) mil €
Repair Lutovo-Bratonožići – (8,77 km) mil €
Repair Bratonožići-Bioče (9,67 km) mil €
Repair Bioče-Podgorica (14,48 km)- 8.3 mil €
Repair of station track in station Podgorica (1,48 km) mil €

14. Main repair (rehabilitation) of Vrbnica – Bar line, the part - Podgorica – Bar line (51,4 km)…
Repair-Podgorica-Golubovci -7.2 million € (9,5km)
Repair Golubovci Zeta 5.4 million € (7,8 km)
Repair Zeta-Virpazar 6.9 million € (8,76 km)
Repair Virpazar-Sutomore 8.7 million € (11,07 km)
Repair Sutomore-Bar 5.3 million € (7,85 km)
Repair station track in station Bar 13.5 million € (1,27 km)
The plan is an arrangement of border stations Bijelo
Polje and station Tuzi , decorating stations Bar,
with special emphasis on the connection with thePort of Bar.
The estimated value for the station Bijelo Polje 2.5 mil €
The estimated value for the station Tuzi 0.5 mill €
The estimated value for the station Bar with special
emphasis on the connection with the Port of Bar 10 mill €

15. Railway Link Čapljina – Trebinje - Nikšić
According to the signed Memorandum of joint actions on development of project-study documentation for the connection of Montenegro and Bosnia and Herzegovina by rail, the Spanish company "Inocsa Ingenieria SL" finished project “Provision of a preliminary decision, and the study of spatial - planning documents for regional Čapljina -Trebinje-Nikšić“
The project was done a preliminary traffic study, preliminary studies on environmental impact assessment, preliminary cost estimates, and preiliminary design solution
Line in lenght 249 km in three scenario
I scenario – double track railway line – 1 bil 450 mil EUR
II scenario – one track railway line plus coridor for second track – 1 bil 90 mil EUR
III scenario – one track railway line – 809 mil EUR
Next step: Feasibility study

16. Railway Link Čapljina – Trebinje - Nikšić

17. Railway Link Pljevlje - Bijelo Polje – Berane-border with Kosovo
In July year published tender for Feasibility Study for the construction of new railway Pljevlja-Bijelo Polje-Berane-border with Kosovo
Total cost expected 250 million € for lenght around 60 km for solution Pljevlja – Ravna Rijeka
Benefits
Socio-economic development of the territory of Montenegro and Kosovo
Increase in capillary network
Economic development of the northern part of Montenegro
Uniform distribution of traffic flows of the respective territories
Division types of traffic flows on road and rail
The creation of new ideas and new international and local trade
Connecting to TEN-T through route 4
Improving the competitiveness of the domestic transport industry
Increase the quality of transport services
Stimulation of economic growth through more efficient and cheaper transport
Improve the safety and security, in order to preserve human lives, values and preserving state resources
Minimizing negative impacts of development of transport and transport infrastructure on the environment and society

18. Railway Link Pljevlje - Bijelo Polje – Berane-border with Kosovo

19. Restructing of railway system of Montenegro
The Tender Commission for privatization of Transport Companies accordance to the Decision of Council for Privatization and Capital Projects and Government Restructuring Strategy of the Railway of Montenegro via public tender of: “Maintenance of railway infrastructure”, which will be separated from “Railway Infrastructure of Montenegro Jsc - Podgorica”, by joint investment into regular and investment maintenance of railway infrastructure, or sale state packages of share with the conclusion of many years of maintenance contracts, and Awarding the concessions for railway stations and lands which are integral part of “Railway Infrastructure of Montenegro Jsc - Podgorica”, Company Egis International has been selected as an Advisor for. Tender are planed to launch in end of Same procedure are for privatization of Montecargo

20. The ownership structure20