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The government approved a bill to allocate the third tranche to the EBRD for the implementation of a project to modernize the railway infrastructure in the amount of 18.2 million euros.

The government approved a bill to allocate the third tranche to the EBRD for the implementation of a project to modernize the railway infrastructure in the amount of 18.2 million euros.

The Cabinet of Ministers approved the corresponding bill on the ratification of an amendment to the loan agreement between Moldova and the European Bank for Reconstruction and Development “RLF – Urgent response – Railways of Moldova” at a meeting on Wednesday. In accordance with the agreement, the EBRD will provide €18.2 million for the rehabilitation of the North-Central railway corridor as part of the Corridors of Solidarity 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 the state enterprise “Railways of Moldova”, 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. As the Minister of Infrastructure and Regional Development Andrei Spinu clarified, the money is intended for the implementation of a project for the rehabilitation of the Vălcineț-Ocnița-Bălți-Ungheni-Chișinău-Căinari railway corridor with a length of 446 km, of which 128 km of the railway are in unsatisfactory condition. This section of the railway provides connections with industrial zones in the north and center of 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. According to Andrei Spinu, repair work will begin in 2025 and will be completed, as planned, in 2027. As previously reported, the beneficiary of the project is the state enterprise “Railways of Moldova”, which will repay this loan, while it will be possible to cover the financial obligations under loans intended for state railway infrastructure. The agreement was signed for 15 years, 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. It is worth noting that this project is also being implemented with financial support from the European Investment Bank (41.2 million euros) and grant assistance in the amount of 19.56 million euros, which will be allocated through the European Neighborhood Instrument. // 03.07.2024 – InfoMarket.

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