New European investments to rehabilitate North-South railway corridor

Chisinau, Dec. 13 /MOLDPRES/- The European Union and the European Investment Bank are offering 53.2 million euros for the rehabilitation of Vălcineț - Ocnița - Bălți - Ungheni - Chişinău - Căinari railway corridor. The money will be used to rehabilitate 128 km of railways, which are in an unsatisfactory condition - risks to rail traffic and can disrupt the operation of regional logistics chains.

Government has approved initiating negotiations and approving the signing of the financing Agreement between Moldova and the European Investment Bank, the government's communication department has reported.

The amount includes 41.2 million euros as a 30-year loan at favorable terms from the EIB and a 12 million euro-grant from the European Union.

The section to be rehabilitated ensures the railway connection with the industrial environment located in the north and center of the Republic of Moldova, the free economic zones in Mărculești, Bălți, Ungheni and Chișinău, as well as the export, import and transit of goods from Romania and Ukraine. It also connects with the railway corridor Căinari - Cimișlia - Basarabeasca - Giurgiulesti, being used including for the logistics of goods transported to Danube and Black Sea ports.

The project implementation will bring several benefits on reducing the duration of railway journeys, the increase of the market share of the railway transport of large tonnage and gauge goods, reducing the load on the road infrastructure, reducing the degree of road wear and increasing the level of road traffic safety.