EIB Global, the European Investment Bank's (EIB) financing arm outside the European Union, has signed a EUR 38 million agreement for the rehabilitation of 148 km of railway on railway line 10 in Kosovo. The upgrading of tracks and stations on Kosovo's international railway network will help increase travel speeds and improve passenger and freight capacity. These improvements will lead to a modal shift from road to rail and contribute to more environmentally sustainable mobility in the region.
As part of the Western Balkans Core Rail Network and an extension of the TEN-T, the Kosovo Railway Line 10 project will improve regional connectivity and integration on the Orient/Eastern Mediterranean Corridor. This is the second EIB loan tranche for this railway project, bringing the total loan amount for the modernisation of Kosovo's railways to EUR 80 million.
EIB Vice-President Lilyana Pavlova, responsible for the Bank's activities in the Western Balkans, said: "The creation of modern, sustainable and efficient transport infrastructure is a prerequisite for stronger economic relations and better living conditions. The project is in line with the EU's Economic and Investment Plan and the Sustainable and Intelligent Mobility Strategy, which aims to double rail freight transport by 2050. This is why it is important for us, as the EU's climate bank, to help the region meet its climate and economic goals by revitalising this green mode of transport to make it more attractive for passengers and trade routes".
Hekuran Murati, Kosovo's Minister of Finance, Labour and Transfers, said: "Railway Line 10 is one of the most important railway lines connecting Kosovo to other countries and its rehabilitation has been a long-standing priority. This agreement is very important to ensure that we are connected to our trading partners and to ensure mobility between our country and the region".
EU Ambassador to Kosovo Tomáš Szunyog said: "The rehabilitation and upgrading of Regional Railway Line 10 in Kosovo, which is part of the Trans-European Transport Network connecting Kosovo with the region and the rest of Europe, is particularly important. It contributes to Kosovo's transport connectivity and will contribute to economic growth and job creation. It will also help to integrate Kosovo into a single regional and EU market".
Over the last ten years, the EIB has supported the rail sector worldwide with more than EUR 39 billion of investment, helping to build or upgrade almost 2 000 km of track and 304 stations.
