Belgrade’s public transport operator GSP Beograd is preparing to purchase 85 new low-floor trams in a procurement valued at more than RSD 40 billion (€340 million) before VAT, while changing the way financing is handled within the tender. The procurement is the largest single tram purchase since tram services began operating in Belgrade and forms part of a wider fleet renewal programme covering trams and trolleybuses.
Unlike previous procurements, manufacturers bidding for the new trams are not required to arrange financing for the vehicles themselves. The change separates the selection of rolling stock from the financing arrangements used to purchase it.
Tender requirements and delivery schedule
The procurement calls for fully low-floor trams approximately 30 metres long, with capacity for at least 200 passengers and compatibility with Belgrade’s existing infrastructure. The complete fleet is scheduled for delivery within 42 months of the contract signing. The tender has been temporarily suspended following a bidder’s request for protection of rights under Serbia’s public-procurement procedures. The procurement has not been cancelled.
Removing the financing requirement could allow a broader range of European and global manufacturers to participate, as suppliers would no longer need to provide financing directly or assemble banking and export-credit packages alongside their technical offers.
Fleet renewal includes CAF trams and trolleybuses
The planned purchase of 85 trams is part of a broader programme for modernising Belgrade’s surface public transport. The city is also pursuing the refurbishment of 29 existing CAF trams, while GSP Beograd has launched a procurement for 60 new trolleybuses. The trolleybuses are required to be capable of travelling at least 15 kilometres without using the overhead network.
The combined investment programme covers replacement and refurbishment of vehicles rather than individual fleet purchases as vehicles reach the end of their operating lives. The programme also has implications for depots, maintenance systems and potentially parts of the tram infrastructure as the fleet is renewed.
GSP strategy covers 2026–2035
The fleet investment is being considered alongside the medium- and long-term business strategy of GSP Beograd for 2026–2035, which is due to be considered by the Belgrade City Assembly. The 85-tram procurement alone is valued at more than €340 million before VAT, placing the rolling-stock programme alongside other major capital requirements for the Serbian capital.
Belgrade is simultaneously financing metro construction, road infrastructure and other capital projects, creating a broader financing requirement for the city. Separating financing from the vehicle procurement could allow Belgrade to seek institutional, bank or other structured financing independently of the manufacturer selected through the tender. It also separates the cost of the vehicles from the cost of capital used to finance their acquisition.
Financing becomes separate from vehicle selection
Once the procurement challenge is resolved and a supplier is selected, financing will become a separate stage of the programme. The financing structure will determine the source, maturity and cost of funding for the tram acquisition and its implications for GSP Beograd and the city budget. The approach allows Belgrade to assess the technical and commercial characteristics of the new trams separately from the financing arrangements used to fund the fleet renewal.
