The European Bank for Reconstruction and Development (EBRD) will provide a loan of EUR 20.3 million for Timisoara tram system modernisation for the period of 2020 – 2023.
The funding will support city’s tram fleet renewal and the rehabilitation of T5 tram line, as well as two consultancies to support the City’s public transport reforms.
“This financial agreement will bring Timisoara closer to a green city concept which includes the mobility system. This is a strong signal that the city really wants to reform this sector,” the vice mayor Ruben Latcau said.
The proceeds of the bank’s loan will be used to co-finance developing Timisoara tram infrastructure, alongside a EUR 53.6 million grant from the European Union through the Regional Operational Programme 2014 – 2020.
In 2019, Timisoara City Council and Bozankaya signed the EUR 33 million contract for the supply of 16 low-floor trams, with an option for 24 additional vehicles. The first tram has been delivered in June 2021 and was granted the approval in October 2021 following successful trials.
Three years ago, the city has also singed a EUR 51.8 million agreement with the West Regional Development Agency for tram infrastructure modernisation and the procurement of new vehicles.
EUR 87.2 million is the value of the infrastructure development programme, including national and local contributions and technical cooperation funds. The EBRD loan covers the financing gap for Timisoara’s priority infrastructure programme and will help the city introduce long-term sustainable urban planning, with a focus on green, resilience and mobility.
Electric transport systems will not only increase mobility in the region but also improve life and environmental standards by promoting energy efficiency, reducing CO2 emissions and improving public transport quality.
The project will save an estimated 22.2 per cent of current emissions, or up to 683 tonnes of carbon dioxide equivalent, per year.
The project will serve as Timisoara’s trigger investment, making it the 53rd member of the flagship EBRD Green Cities urban sustainability programme.
The Green City Action Plan (GCAP) will build on Timisoara’s pre-existing key objective to improve its public transport infrastructure and services, which is a pre-requisite for business and economic development in the region. This is in line with the EU’s Regional Operational Programme for Romania, targeting green and mobility investments.