Moldova will receive from the EBRD the third 18.2 million euros tranche for the implementation of a project to modernize the railway infrastructure.
The European Bank for Reconstruction and Development reported this, noting that this is provided for by the Agreement on Amendment No. 1 signed in Chisinau to the Credit Agreement between Moldova and the European Bank for Reconstruction and Development “RLF - Moldovan Railways Crisis Response”. The document was signed at the end of last week during the visit to Moldova of the EBRD Vice President for the Banking Sector Matteo Patrone and the new EBRD Managing Director for Ukraine and Moldova Arvid Tuerkner. On behalf of the Moldovan side, the agreement was signed by the Minister of Infrastructure and Regional Development, Andrei Spinu. It envisages the provision of 18.2 million euros to Moldova by the European Bank for Reconstruction and Development for the rehabilitation of the North-Centre railway corridor as part of the “Solidarity Lanes” initiative. This is the third tranche that the EBRD allocates for the implementation of this project (the first tranche was 12 million euros, the second - 11 million euros). The beneficiary is “Railways of Moldova” state enterprise (CFM), which will repay this loan, while the possibility will be provided for the Ministry of Finance to cover financial obligations on loans intended for the state railway infrastructure. The agreement was signed for a 15-year term; the interest on the loan is floating, and currently amounts to 3.65% per annum. The first loan payment is scheduled 3 years after the agreement comes into force. In general, the project provides for the rehabilitation of the Valcinet-Ocnita-Balti-Ungheni-Chisinau-Cainari railway corridor with a length of 446 km, of which 128 km of the railway are in unsatisfactory condition. The project will be implemented with the financial support of partners, in particular, the EBRD provided a loan of 23 million euros, the EIB - 41.2 million euros, and another 19.56 million euros will be a grant allocated through the European Neighborhood Instrument. This section of the railway provides connections with industrial zones in the northern and central Moldova, including free economic zones in Marculesti, Balti, Ungheni and Chisinau. The railway corridor is important for the export, import and transit of goods from Romania and Ukraine. In addition, this section connects the Cainarı-Cimişlia-Basarabeasca-Giurgiulesti railway corridor, used for the logistics of transshipment cargo in the ports of the Danube and the Black Sea. Rehabilitation works on the site are scheduled to be completed before the end of 2025. The EBRD statement notes that financing the rehabilitation of Moldova's railways supports the government's efforts to improve the railway network and maintain railway infrastructure at an acceptable level to promote economic growth and regional integration. The project is part of the EU-Ukraine solidarity program, which aims to provide an alternative to sea routes for the import and export of goods from Ukraine to Europe. The project will increase food security by facilitating the delivery of Ukrainian goods to the largest operating port on the Black Sea, Constanta, as well as to the ports of Romania, Moldova and Ukraine - Galati, Reni, Izmail and Giurgiulesti. They have a combined operating capacity capable of covering a significant part of Ukraine's export needs. The EBRD said it has stood firmly behind Ukraine and neighboring countries since Russia invaded Ukraine in 2022, significantly increasing its investment in war-torn countries. As the largest institutional investor in Moldova, the EBRD has to date invested more than 2.4 billion euros in our country through 176 projects. // 17.06.2024 - InfoMarket.
