Top European bank to provide new loan to Moldova's Railways

Chisinau, 6 October /MOLDPRES/ - The European Bank for Reconstruction and Development (EBRD) provides the national railway operator of Moldova an additional loan worth 23.5 million euros for the modernization of the essential infrastructure.   

The new loan comes after the providing of another financial package of 110 million euros, provided jointly by EBRD, European Investment Bank (EIB) and European Union, negotiated in 2014 and disbursed in 2017, for the modernization of the railway infrastructure, purchasing of the new rolling stock and backing the process of the state enterprise’s reformation. Moldova’s government asked for the new financing, in order to continue modernizing the infrastructure.  

So far, 12 new locomotives have been bought and put into operation with EU’s support. Decision-makers made a feasibility study on the works of restoration of the railway segment Bender-Causeni-Basarabeasca-Etulia-Giurgiulesti, where the works will start soon. Besides, Moldova’s Railway prepares to launch a tender for an information system of management of the energy consumption (EMIS), for a more efficient and advantageous planning, monitoring of the energy consumption.  

According to Deputy Prime Minister, Infrastructure and Regional Development Minister Andrei Spinu, ‘’the money will be allocated for the modernization of the railway infrastructure on the segment Bender-Causeni-Basarabeasca-Etulia-Giurgiulesti, which is the most agglomerated one from Moldova, as it provides the transit of goods from Romania and Ukraine.’’ ‘’The sector’s revival just starts. This sector will get a new image, with the efficient management of the money, with maximal responsibility and discipline,’’ the official said.  

For his part, the Managing Director for Eastern Europe and the Caucasus (EEC) at EBRD Matteo Patrone said that ‘’the Bank’s financing will improve the operational efficiency and the corporate governance at Moldova’s Railway and will bring important benefits for the trade, economy and living of the people from Moldova.’’  

EBRD is the principal institutional investor of Moldova. So far, the bank has invested more than 1.4 billion euros through 146 projects in various sectors of the country’s economy. The bank also provided consultancy services to more than 1,000 small enterprises.  

Photo: EBRD