EIB to provide €25 mln loan for air traffic upgrade in Serbia, Montenegro

The European Investment Bank (EIB Global) will provide a €25 million loan to upgrade air navigation systems in Serbia and Montenegro.

The funding will support SMATSA, the air navigation service provider for both countries, in improving operational efficiency, safety, and interoperability.

The project includes new software solutions aligned with Eurocontrol standards and the Digital European Sky strategy, enhancing air traffic management. SMATSA, which oversees about 9% of European flights, will upgrade control centers in Belgrade, Podgorica, Tivat, Batajnica, Kraljevo, and Niš. The improvements aim to reduce operational costs, shorten flight times, and lower CO2 emissions, while strengthening regional connectivity.

Co-financed by the European Bank for Reconstruction and Development (EBRD), the initiative is part of the European Commission’s Economic and Investment Plan, which supports transport modernization in the Western Balkans.

To date, the EIB has invested €6.6 billion in the region’s transport sector.