EIB Global will invest EUR 41.2 million in the rehabilitation of rail infrastructure in Moldova and the loan will be complemented by a EUR12 million grant from the EU.
This is an investment to implement a project to repair 128 km of Moldova's vital North-South rail corridor, which facilitates trade and connectivity between Moldova, Ukraine and Europe, which is of particular importance in connection with the EU's Solidarity Lanes initiative. In particular, EIB Global, the development finance arm of the European Investment Bank (EIB), signed a EUR 41.2 million loan agreement with the Moldovan government to rehabilitate the country's railway infrastructure. This investment, complemented by an EU investment grant announced earlier during the Gateway Global Forum, will improve Moldova's domestic connectivity, provide a crucial export route for Ukraine, and contribute to regional stability and economic sustainability. The project will be implemented by the state enterprise Railways of Moldova (CFM). Rehabilitation of the North-South railroad corridor in Moldova is the main objective of the project. Out of the total length of the corridor of 370 km, about 128 km will be repaired. The project will include the repair of the rail infrastructure on the Valcinet-Ungheni-Chisinau-Cainari section in Moldova. This commitment is part of an overall country-wide reform aimed at improving the rail infrastructure and bringing - in the long term - Moldova's rail network in line with EU standards and practices. As a result, truck transportation will be substituted for rail freight transportation, increasing mobility and reducing environmental impact. This is in line with the goal of the EU's Global Gateway strategy for sustainable transport and will contribute to greener and more efficient logistics. Moldovan Finance Minister Petru Rotaru said that the implementation of this project will result in a number of benefits: shorter rail journeys, increased market share for rail transport of large and bulky goods, less pressure on road infrastructure, minimized road wear and tear, and improved road safety". EIB Vice President Tereza Czerwińska, who is responsible for the bank's operations in Moldova, said that as Moldova becomes a significant point for trade and transit activities, it is vital to improve its transport infrastructure. "In view of Moldova's aspirations to join the EU, we are determined to help the country bring its systems and its infrastructure up to EU standards, facilitating its fuller integration with the EU market and ensuring the country is supported on its path to EU accession. Moldova can count on the EU bank for both financial support and technical assistance to reinforce its infrastructure through quality projects," she said. For his part, EU Ambassador to Moldova Janis Mazeiks emphasized that this investment will strengthen the sustainability of Moldova's railway infrastructure, improve Moldova's connectivity with Ukraine and Europe, and benefit the country's economy. "As Moldova becomes a constituent part of the pan-European transport system (movement of goods, people and services), the modernization of the country's transport system is an urgent goal. Given Moldova's candidate state status and its aspirations to join the European Union, we will continue to assist the country and modernize all necessary routes," he said. EIB Global is the EIB Group's new specialized unit for increasing the development impact of international partnerships and financing outside the European Union. Since the start of its operations in Moldova in 2007, the EIB has channeled over EUR 1.19 billion to 33 projects in a number of sectors: transport, energy, SMEs, agriculture and urban infrastructure. A record year for the EIB in Moldova was 2022, when EUR 250 million in new loans were disbursed. In 2023, the bank provided its first corporate loan in Moldova, a EUR 30 million project with Premier Energy Distribution. The aim of this project is to improve the quality and reliability of the electricity grid. // 15.12.2023 - InfoMarket.
