The loan, signed by Moldova’s Prime Minister Iurie Leancă and EBRD Director for Transport, Sue Barrett, in Chișinău on November 14, 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 Neighbourhood 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 modernisation 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.
Photo: Club Feroviar