The EBRD will allocate 23 million euros for the rehabilitation of the infrastructure of 2 sections of the Moldovan railway within the framework of a project worth 71 million euros.
According to the European Bank for Reconstruction and Development, in particular, we are talking about financing the purchase of materials necessary for the restoration of the infrastructure of the Vălcineţ - Balti - Ungheni railway sections (under the 1st tranche) and Chisinau - Cainari (under the 2nd tranche). The EBRD loan in the amount of up to 23 million euros will consist of the 1st tranche of up to 12 million euros and the 2nd tranche of up to 11 million euros. The total cost of the project “Moldavian Railways Response to the Crisis” will amount to 71 million euros. To implement the project, the European Union will allocate an investment grant of up to 20 million euros. In addition, it will be co-financed in the amount of up to 28 million euros from the CFM / state budget. As noted in the materials of the EBRD, the Moldovan Railways Crisis Response project will support the economic development of Moldova, increase its logistics and transit capacity and increase operational efficiency by restoring sections of the North-South railway corridor. The project will facilitate the transportation of goods along alternative routes from Ukraine through Moldova to the EU. The project is aimed at ensuring food security and improving access for Ukrainian goods to the largest port on the Black Sea, Constanta, as well as to ports in Romania, Moldova and Ukraine - in Galati, Reni, Izmail and Giurgiulesti, whose operating capacities are able to "absorb" a significant part of export needs of Ukraine. The project supports the transition from high-carbon to low-carbon modes of transport, as goods from/to Ukraine via Moldova are mainly transported by road due to the lack of capacity on Moldova's North-Central rail network. The Moldovan Railways Crisis Response project is expected to increase capacity and reduce speed limits on the existing rail infrastructure. It will increase the logistics and transit potential of the country's national rail transport network, contributing to Moldova's sustainable economic development. By improving the rail infrastructure, the project will increase capacity and remove speed limits on the existing rail infrastructure. The expected result is more traffic, an increase in the number of people willing to use the railway network rather than the road network (modal shift). The EBRD loan will be provided to the State Enterprise "Railway of Moldova", which will be responsible for the implementation of the project.// 15.03.2023 — InfoMarket
