The European Investment Bank has signed an agreement to extend a 130 million euro ($161.8 million) loan towards the cost of overhaul and electrification of the 100 km Dimitrovgrad-Nis railway line in eastern Serbia, EIB vice-president Dario Scannapieco said.
The European Commission will support the project with a 73 million euro investment under the Western Balkan connectivity agenda in addition to the EIB loan, Scannapieco said in a video file posted on the website of Serbian news agency Tanjug on Wednesday.
The project will include the construction of a bypass road around Nis, Scannapieco said.
Earlier this week, Serbia’s infrastructure minister Zorana Mihajlovic said the government plans to kickstart this year the overhaul of the railway section between Nis and Dimitrovgrad, close to the border with Bulgaria.
The overhaul and electrification of the railway will cost an estimated 260 million euro, the head of the EIB regional representation for the Western Balkans, Dubravka Negre, said in October.