Moldova will receive a grant of 12 million euros from the EIB for the development of railway infrastructure supporting regional trade routes with Ukraine
This is stipulated by the respective grant agreement, signed by the parties within the 5th edition of the Ministerial Conference of the Moldova Partnership Platform held in Chisinau. As noted by the European Investment Bank, this grant complements a loan agreement of 41.2 million euros signed in 2023. The funding will be used to rehabilitate and modernize key sections of Moldova's railway infrastructure, which will improve domestic connectivity and provide a vital export route for Ukraine. The project is in line with the Solidarity Lanes initiative, which aims to strengthen regional stability and economic resilience by improving Moldova's connectivity to Europe and Ukraine. European Union Ambassador to Moldova Janis Mazeiks said the 12 million euros grant for the development of the country's railway structure will address one of the key issues holding back the country's economic development - transportation infrastructure. “Thanks to the 12 million euros EU grant, we continue to modernize Moldova's railway infrastructure and improve EU-Ukraine-Moldova transport routes. To date, the Solidarity Lanes have been a vital form of EU support for Ukraine and Moldova amid Russia's war against Ukraine, as they have helped Ukraine export more than 136 million tons of goods such as grain, ore and steel, and import more than 52 million tons of essential goods,” he said. In particular, the grant will be allocated to Moldova by the European Investment Bank within the Moldova Solidarity Lanes European initiative for the rehabilitation of the 446-km-long Valcinet-Ocnita-Balti-Ungheni-Chisinau-Cainari railroad corridor, of which 128 km of the railroad are in unsatisfactory condition. This situation creates risks for rail traffic and may disrupt it, including the functioning of regional logistics chains. At the same time, the speed and weight restrictions imposed on this sector make transportation logistics very costly. This railroad section provides links to industrial zones in the north and center of Moldova, including 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-Giurgiulesti rail corridor, used for transshipment logistics in the Danube and Black Sea ports. Implementation of the project will reduce rail transportation time, increase the market share of rail transportation of large-capacity and oversized cargo, reduce the load on road infrastructure, reduce road wear and increase road safety. It will also reduce carbon dioxide emissions. Solidarity Lanes initiative is designed to assist Moldova and Ukraine in the processes of reorienting the logistics chains of transportation caused by the war in Ukraine. The project will be implemented with financial support from partners, and the Moldovan Parliament has already ratified the relevant financial agreements. In particular, the EBRD has allocated a loan of 23 million euros, followed by an additional 18.2 million euros, the EIB - 41.2 million euros, another 19.56 million euros in a grant will be provided through the European Neighborhood Instrument. // 18.09.2024 - InfoMarket.
