Moldova’s state-run railway company Calea Ferata din Moldova (CFM) has secured an investment grant of about €52.5 million ($66 million) from the European Bank for Reconstruction and Development (EBRD) to implement a rail investment which is estimated to be worth some €116.75 million ($145.5 million).
Under the plan, the acquired funds will be used to finance the planned purchase of 10 new locomotives and rail upgrades in Moldova, the bank said in a statement.
The deal was signed by Moldova’s Prime Minister Iurie Leancă and Sue Barrett, who serves as the Director for Transport at the EBRD.
“The Moldovan railway sector is in urgent need of fundamental restructuring in order to be financially viable, to provide adequate railway services and to be able to compete with other modes of transport. The EBRD is teaming up with the EIB, the EU and development partners to support this restructuring,” Barrett said at the official signing ceremony. “Better, safer and more efficient rail transport services require comprehensive reforms and our joint investment, grant financing and technical advice will significantly contribute to this effort.”
The European Union is co-financing the forthcoming locomotives acquisition by providing an investment grant of €5 provided through the Neighbourhood Investment Facility (NIF) to Moldova.
“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,” the bank said.
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