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The European Bank for Reconstruction and Development will allocate the third tranche of 18.2 million euros for the implementation of a project on the modernization of Moldova's railway infrastructure.

The European Bank for Reconstruction and Development will allocate the third tranche of 18.2 million euros for the implementation of a project on the modernization of Moldova's railway infrastructure.

At a meeting on Wednesday, the government approved the signing of an agreement on the amendment No 1 to the loan agreement between Moldova and the European Bank for Reconstruction and Development “RLF - Moldovan Railways Crisis Response”, signed in Chisinau on 27 June 2023. It provides for the allocation of 18.2 million euros for the rehabilitation of the North-Centre railroad corridor, within the “Solidarity Lanes” initiative. This is the third tranche that the EBRD allocates for the realization of this project (the first tranche amounted to 12 million euros, the second - 11 million euros). The beneficiary is the state enterprise “Railways of Moldova” (CFM), which will repay the loan, with the possibility for the Ministry of Finance to cover the financial obligations of loans intended for the state railway infrastructure. The agreement will be signed for a 15-year term, and the interest on the loan is floating, currently at 3.65% per annum. The first loan repayment is scheduled 3 years after the agreement enters into force. Let is remind you that in general, the project envisages rehabilitation of the railway corridor Valcinet-Ocnita-Balti-Ungheni-Chisinau-Cainari, 446 km long, of which 128 km are in unsatisfactory condition. The project will be implemented with the financial support of partners, in particular, the EBRD has allocated 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 railroad provides links to industrial zones in the north and center of Moldova, including the free economic zones in Marculesti, Balti, Ungheni and Chisinau. The rail corridor is important for exports, imports and transit of goods from Romania and Ukraine. In addition, this section connects the Cainari-Cimislia-Basarabeasca-agiurgiulesti rail corridor, used for transshipment logistics at the Danube and Black Sea ports. Repair works on the section are planned to be completed by the end of 2025. // 12.06.2024 - InfoMarket.

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