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Sunday, January 21, 2018

EBRD to help fund Moldovan rail system upgrades

This Moldovan train soon will be running under modernized conditions.

An agreement in which the European Bank for Reconstruction and Development (EBRD) would co-finance a modernization upgrade of the Moldovan rail system that will cost the equivalent of $145 million was announced recently.

The bank will fund $65.3 million of that total to get the project up and running. The funds will go toward new multi-purpose locomotives and much-needed railway improvements and repairs. The bank also intends to help the state-owned railway improve its energy consumption to cut costs down the line. The EBRD is joined by the European Investment Bank (EIB), the Central European Initiative and the Czech Republic's government, who will finance the rest.

"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," Sue Barrett, EBRD's director of transportation, said. "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.”

Organizations in this Story

European Bank for Reconstruction and Development

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