Government of Montenegro Ministry of Transport and Maritime Affairs Podgorica, April 2013 1
I RAIL INFRUSTRUCTURE 1. Rehabilitation of railway line Bar Vrbnica, according to the study Italferr: Technical and Financial Study for the rehabilitation of the Belgrade Bar railway line 2. Railway Link apljina Trebinje - Nikši 3. Railway Link Pljevlje - Bijelo Polje Berane-border with Kosovo 4. Restructing Privatization of railway system of Montenegro - 2
Ralway line Bar - Vrbnica The Belgrade-Bar railway line ( -79) was constructed and put into operation in phases, from 1958 to 1976. 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. 3
Current Situation The electrified single line Bar Vrbnica has a length of 167. 4 km and was opened to traffic in 1976. 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) 4
51,6 km of tunnels and galleries 15.6 km of bridges and viaducts 5
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 6
Project Justification v EIRR 1,6%, v Time savings 5 hours, v Decreased costs for ordinary and daily maintenance by 30% v Removed bottlenecks bridges, tunnels, landslides, rock falls and avalanches, v Improved safety and security 35%, v Modal shift and intermodality 2 new terminals, v Ecology sensitive areas protection - National Park Skadar lake (9,717 km) 7
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. 8
Financial Analysis TYPE OF WORKS MONTENEGRO Montenegro Short-term term scenario to 2015 Medium-term to 2020 Year Million 2011 12.705.315 2012 18.304.644 2013 18.847.112 2014 25.212.945 2015 26.228.705 Total 1 101.298.721 2016 11.879.075 2017 7.677.780 2018 6.915.490 2019 6.021.650 2020 5.178.334 Total 2 37.672.329 Total 138.971.050 CIVIL ENGINEERING INFRASTRUCTURE SUBSTRUCTURE AND PERMANENT WAY 58.310.810 BRIDGES 19.328.100 TUNNELS 14.101.980 LANDSLIDES ROCKSLOPES AVALANCHES 1.486.850 6.359.340 2.506.900 HYDRO-ENGINEERING WORKS 465.110 STATION BUILDING AND RELATED FACILITIES 17.396,880 TOTAL 1 119.955.970 ELECTRICAL INFRASTRUCTURE ELECTRIFICATION 5.242.950 SIGNALING 13.677.600 TELECOMMUNICATIONS 94.540 TOTAL 2 19.015.090 TOTAL 138.971,060 9
What we have v Regular maintenance of infrastructure and traffic regulation 6,8-10 mil per year (Budget) v loan from: EBRD - 25 mil, EIB - 34 mil v IPA 2007, 2009, 2010 and IPA III component - 18,7 mil What we need v Main repair (rehabilitation) of Vrbnica Bar line, the part - Kolasin Podgorica line (63,1 km), v Main repair (rehabilitation) of Vrbnica Bar line, the part - Podgorica Bar line (51,4 km) 10
Railway Link apljina Trebinje - Nikši 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 apljina -Trebinje-Nikši 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 11
Railway Link apljina Trebinje - Nikši 12
Railway Link Pljevlje - Bijelo Polje Beraneborder with Kosovo In July 2012. 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 13
Railway Link Pljevlje - Bijelo Polje Beraneborder with Kosovo 14
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 2013. Same procedure are for privatization of Montecargo 15
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