The European Bank for Reconstruction and Development is considering a sovereign-guaranteed loan of up to €30 million to Montenegro’s state passenger railway operator ŽPCG for the purchase of as many as 10 new sleeping cars for international services.
The project is in the EBRD’s exploratory stage and remains subject to final review, with approval scheduled for Dec. 2, 2026.
The financing has therefore not yet been signed.
EBRD lists the total project cost at €30 million and classifies it as 100% Green Economy Transition, reflecting the potential shift of passengers from road and air travel toward rail.
The new coaches would replace ageing cars used on international routes and improve interoperability with European railway networks.
That is particularly relevant for Montenegro’s links with Serbia and onward connections toward central Europe, where overnight rail remains one of the country’s few long-distance passenger alternatives.
ŽPCG is 96.34% state-owned, making the sovereign guarantee a public-finance commitment as well as a transport investment.
The project follows a separate roughly €30 million contract with Stadler for three FLIRT electric trains signed earlier in 2026, while Montenegro is also investing heavily in rehabilitation of the Bar-Podgorica railway corridor.
For international passenger services, however, better coaches alone will not determine competitiveness.
Journey times, track condition, border procedures and timetable reliability remain critical to whether travellers choose rail over cars, buses or airlines.
The proposed financing is therefore closely linked to the wider infrastructure programme.
New sleeping cars could improve comfort and strengthen overnight services between Montenegro and Serbia, particularly during the summer tourism season, but their commercial value will depend on whether infrastructure upgrades also produce faster and more reliable journeys.
Rail could provide a useful alternative as road congestion and airport traffic increase, especially for passengers travelling between Serbia and the Montenegrin coast.
The sovereign guarantee reduces ŽPCG’s financing burden but leaves the state exposed to the operator’s credit risk.
That makes utilisation and service performance important once the coaches enter operation.
The next milestone is EBRD approval in December.
If approved and signed, the project would give Montenegro a modern international passenger product. The larger test will be whether improvements to the railway itself allow that product to compete effectively with road and air travel.
