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European money to restore railway infrastructure in Moldova

14-11-2014 18:08
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Prime Minister Iurie Leanca and Transport Director of the European Bank for Reconstruction and Development (EBRD) Sue Barrett today signed an agreement on financing the project on modernisation of the Moldovan Railways state-owned enterprise.

 

Under the agreement, the EBRD will invest 52.5 million euros to modernise the railways of Moldova. The money will be used for restoring railway infrastructure and purchasing ten new locomotives. It is worth mentioning that the EU co-finances the procurement of locomotives with a grant worth 5 million euros.

 

The project is focused on ample reform of the railway sector meant to improve its safety and effectiveness, as well as to reduce the energy consumption and related costs.

 

The project to modernise the railways of Moldova needs investments estimated at 116.75 million euros. Thus, the European Investment Bank will back this project with a similar loan granted by EBRD – amounting to 52.5 million euros. The project will also benefit from a grant of 1.75 million euros from the EBRD's funds, as well as from the Central European Initiative (CEI) and the Czech government.

 

Iurie Leanca appreciated the European partners’ willingness to back the modernisation of the Railways enterprise. “It is a strategic enterprise for the national economy, and the impact on reforming the railway sector will be surely felt by a large number of people, Moldova’s economy, and it will make Moldova to be a country of transition for goods from east to west and vice versa”, he said.

 

Sue Barrett said that Moldova’s development partners backed the restoration process to help the Moldovan government modernise the railway sector. “The Railway sector of Moldova needs fundamental reorganisation in order to be financially viable, to provide adequate transport services and be able to compete with other forms of transport, and our common investments, grants and technical consultancy will significantly contribute to this effort”, Barrett noted.

 

For his part, Head of EU Delegation to Moldova Pirkka Tapiola reiterated the European support for Moldova. “This investment is a strong message for potential investors willing to benefit from the Free Trade Agreement with Moldova and new opportunities in this country”, said Tapiola.

 

EBRD is the largest institutional investor from Moldova. The bank’s priorities in Moldova are related to supporting the activity of the private sector, promote European standards and regional integration and development of effective and sustainable public utilities. So far, EBRD has invested 900 million euros in over 100 projects.

Agenda

June 2027

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