The European Bank for Reconstruction and Development (EBRD) is providing a €52.5 million loan to Moldova’s state-owned rail company, Calea Ferată din Moldova.
Signed in the presence of Moldova’s Prime Minister, Lurie Leancă, the loan will co-finance the acquisition of 10 new locomotives and support various infrastructure improvement projects.
The EBRD loan is being released in two parts, where the second €27.5 million tranche is subject to the operator achieving certain goals.
Calea Ferată din Moldova has embarked on a €116.75 million project to modernise and replace the country’s life-expired rolling stock.
Additional funding is being provided through an EU grant and a supporting loan from the European Investment Bank (EIB).
Sue Barrett, EBRD director for transport, said: “The Moldovan railway sector is in urgent need of fundamental restructuring in order to be financially viable, to provide adequate railway services and to be able to compete with other modes of transport.
“The EBRD is teaming up with the EIB, the EU and development partners to support this restructuring. Better, safer and more efficient rail transport services require comprehensive reforms and our joint investment, grant financing and technical advice will significantly contribute to this effort.”