Moldova will receive a 23-million-euro loan from the EBRD to modernize the railway corridor Valcinet - Ocnita - Balti - Ungheni - Chisinau - Cainari.
This is stipulated in the loan agreement between Moldova and the European Bank for Reconstruction and Development "RLF - Moldovan Railways Crisis Response", ratified by the parliament on Friday and signed in Chisinau on June 27. It was agreed that the EBRD will provide Moldova with a 23-million-euro loan in two tranches for the repair and modernization of the railway corridor Valcinet - Ocnita - Balti - Ungheni - Chisinau - Cainari. Moldova will also receive a 20-million-euro grant from the European Commission for the same purposes. According to the authorities, the reconstruction of this railroad corridor will attract new volumes of goods and increase the number of passengers. This is due to the fact that after the completion of repair works, the speed of trains will be increased, certain restrictions will be lifted and the time of trains' movement will be reduced. The EBRD loan will be provided for 15 years. As previously reported by InfoMarket, the EBRD said that it will allocate 23 million euros for the restoration of infrastructure of 2 sections of the Moldovan railroad in the framework of a project worth 71 million euros. It is about financing the purchase of materials necessary for the restoration of the infrastructure of the railroad sections Valcinet-Balti-Ungheni (within the 1st tranche) and Chisinau-Cainari (within the 2nd tranche). The EBRD loan of up to 23 million euros will consist of a 1st tranche of up to 12 million euros and a 2nd tranche of up to 11 million euros. The total cost of the project "RLF - Moldovan Railways Crisis Response" 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 with up to 28 million euros from the railways/state budget. The project "RLF - Moldovan Railways Crisis Response" will support Moldova's economic development, increase its logistics and transit potential and improve operational efficiency by rehabilitating sections of the North-South railway corridor. The project will facilitate the transportation of goods via alternative routes from Ukraine through Moldova to the EU. The project supports a shift from high-carbon to low-carbon modes of transportation, as goods from/to Ukraine via Moldova are mainly transported by road due to capacity constraints on the North-Central Railway Network of Moldova. // 24.11.2023 - InfoMarket.
