Top European bank to cofund railway modernisation in Moldova

11:31 | 14.11.2014 Category: Economic

Chisinau, 14 November /MOLDPRES/ - The European Bank for Reconstruction and Development (EBRD) offers 52.5 million euros to modernise the railways of Moldova. A Loan Agreement to this effect was signed in Chisinau today.

Prime Minister Iurie Leanca said that the modernisation of the infrastructure was a priority for the government. The prime minister said the railway sector urgently needed restructuring in order to provide quality services.

EBRD Transport Director Sue Barrett said that the loan would be offered in two instalments. The first instalment will amount to 25 million euros, money that will be used to purchase ten new multifunctional locomotives and the rehabilitation of the railway infrastructure. Head of EU Delegation to Moldova Pirkka Tapiola said that the EU would co-finance the purchase of locomotives with an investment grant of five million euros.

Furthermore, with EBRD's assistance, the company's energy management will be improved to reduce energy consumption and action plans to restructure the railway sector and strengthen the investment capacities will be developed.

The project to modernise the railways of Moldova amount to a total of 116.75 million euros. Besides the EBRD loan of 52.5 million euros, the European Investment Bank will support the project with a similar loan. The project will also benefit from a grant of 1.75 million euros from the EBRD's own funds, by the Central European Initiative (CEI) and the Czech government.

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