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Modern Moldavian train leaving the Strășeni train station.Photo. Ion Chibzii
EBRD credit for Moldovan railway
Published: Tue, 2014-11-18 11:31-
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Financing 10 new multi-purpose locomotive
EBRD and its partners are supporting Moldovan railway on track with 52.5 B EUR Credit: Bank co-finances €116.75 million modernization project. In a key step towards the modernization of Moldova’s railways the EBRD is providing €52.5 million to the state-owned railway company, Calea Ferată din Moldova.
The loan, signed by Moldova’s Prime Minister Iurie Leancă and EBRD Director for Transport, Sue Barrett, in Chișinău today, will be used to co-finance the acquisition of around 10 new multi-purpose locomotives and the rehabilitation of rail infrastructure.
The European Union is co-financing the purchase of the locomotives with a €5 million investment grant through its Neighborhood Investment Facility (NIF).
The EBRD finance will also support a broader reform of the railway sector to improve safety and efficiency. Action plans to restructure the railway sector and to strengthen the institutional capacities in the key areas of environment, procurement and corporate governance will be developed with the EBRD. The Bank will also support improvements of the company’s energy management to cut consumption and costs.
Moldova’s railway sector is in urgent need of fundamental restructuring to provide adequate services and compete with other means of transport. Its life-expired rolling stock fleet is in serious need of renewal. The company has therefore launched a far-reaching modernization project with €116.75 million in new investments.
In addition to the EBRD’s €52.5 million loan, the European Investment Bank is expected to provide a parallel loan of a similar size to support this programme.
Source: EBRD:
Av Markku Björkman
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