The EU will provide an investment grant of 12 million euros to implement the EIB Global project to rehabilitate and modernize 2 key sections of the Moldovan railroad.
This is stipulated by the relevant contract between the European Commission and the European Investment Bank, which was signed by European Commissioner for Neighborhood and Enlargement Olivér Várhelyi and EIB President Werner Hoyer within the Global Gateway forum in Brussels. According to the report of the EU Delegation to Moldova, it is planned that the modernized railway infrastructure, supported by the forthcoming EIB Global loan of 42 million euros, will not only improve internal communication within our country, but will also become the most important export route for Ukraine, contributing to stability in the region and economic sustainability. Central to this project is the rehabilitation of the north-south rail corridor in Moldova. It provides a critical link between western Ukraine and key ports on the Danube and Prut with access to international waters. The improvement of the existing rail connection between Moldova and Ukraine is aimed at boosting trade and will benefit both Ukrainian exports and the Moldovan economy, particularly in view of the EU-Ukraine Solidarity Lanes initiative. The project will be implemented by the State Enterprise "Railways of Moldova" (CFM) and will cover the rehabilitation of rail infrastructure on the Moldovan corridor Valcinet-Ungheni-Chisinau-Cainari. This is part of the overall reform being undertaken in the country to improve the existing rail infrastructure and bring Moldova's rail network in line with EU standards and practices in the long term. In addition to direct infrastructure improvements to Moldova's key rail infrastructure, the project supports Moldova's efforts in solidarity with its neighbors and improves the crucial route of the Solidarity Lanes. It also demonstrates the commitment of the EU and its bank, the EIB, to support neighboring countries in difficult times. EIB President Werner Hoyer said that the EU's 12 million euros contribution to Moldova's railway infrastructure, which will be complemented by an EIB loan, is a testimony to the partnership and common goals between Moldova and the EU. It will improve Moldova's economic prospects and support regional connectivity with Ukraine in these difficult times. Moldova can count on the financial and technical support of the EU bank to modernize its infrastructure through quality projects. For his part, European Commissioner for Neighborhood and Enlargement Olivér Várhelyi said that he was happy that the EU Solidarity Lanes initiative had been implemented in Moldova. According to him, this project is an excellent example of how joint efforts lead to tangible results. "As Moldova becomes an integral part of the circulation of goods, people and services, the modernization of the country's transport infrastructure is an urgent need. I am therefore pleased that this investment will strengthen the resilience of Moldova's rail infrastructure, improve Moldova's connectivity to Ukraine and Europe, and benefit the Moldovan economy. In the context of our Economic and Investment Plan for the Eastern Partnership countries, we will continue modernizing all the necessary routes," he said. Moldovan Prime Minister Dorin Recean, who watched the signing of the investment grant for Moldova at the Global Gateway forum, expressed gratitude to the European Commission and the EIB for backing the authorities' efforts to develop a modern and efficient railway network in Moldova. He noted that the rehabilitation of the country's north-south rail corridor, a project of particular importance in the context of the Solidarity Lanes, will bring long-term economic benefits to the entire region. "This project is a crucial part of our efforts to fully integrate Moldova into the European rail network. We will continue to rely firmly on the support of the EIB and the EU to achieve this goal," Prime Minister said. EIB Global is a new specialized unit of the EIB Group, dedicated to enhancing the impact of international partnerships and development finance outside the EU. EIB Global brings the Group closer to local communities, companies and institutions through our offices around the world. Since the start of its presence in Moldova in 2007, the EIB has committed more than 1.19 billion euros to 33 projects in various sectors: transport, energy, SMEs, agriculture and municipal infrastructure. 2022 was a record year for the EIB in Moldova, with new loans worth 250 million euros signed with the public sector. In 2023, the EIB provided its first corporate loan in Moldova, a $30 million project for Premier Energy Distribution to improve the quality and reliability of the electricity grid. The Global Gateway Forum brought together for the first time representatives of EU and global governments, as well as key stakeholders from the private sector, civil society, opinion leaders, financial institutions and international organizations to promote global investment in transformative hard and soft infrastructure to achieve the UN Sustainable Development Goals. The Global Gateway is the EU's strategy to reduce the global investment gap and develop smart, clean and secure connectivity in the digital, energy and transportation sectors, as well as to strengthen health, education and research systems. The Global Gateway strategy embodies the "Team Europe" approach, bringing together the EU, EU Member States and European development finance institutions. It aims to mobilize up to 300 billion euros of public and private investment in 2021-2027, create the necessary linkages, and close the global investment gap. // 26.10.2023 - InfoMarket.
