​EBRD AND EIB TO HELP MOLDOVA MODERNIZE RAILROAD

Moldova will receive help in modernizing its railroad from two European banks – the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).

In an interview to Infotag, Minister of Transport and Road Infrastructure Vasile Botnari said that Moldova managed to convince the development partners to support the project of modernizing the National Railroad Company of Moldova (CFM).

“Currently, a credit agreement with the EBRD worth 52.5 million for development and modernization of the railroad has already been ratified. Also, there is an understanding with the EIB on providing an equivalent credit”, said the Minister, adding that the European commission is ready to provide for this purposes a grant worth 5 million euros.

The money will be used for capital repairing of the problematic sectors of Moldovan railroad. Primarily, it is about sectors, included in the international corridors Chisinau-Ungheni and Ungheni-Ocnita.

“A part of financing will be used for purchasing 11 new mainline locomotives”, said Botnari, drawing the attention to the fact that over the last 25 years no considerable investments have been made in renewing the Moldovan railroad infrastructure and rolling stock.

According to the minister, all the CFM efforts are directed to supporting the railroad in a working condition. The road is used by locomotives and rail cars, purchased in the Soviet period.

“According to specialists, around 400 million euros should be invested within the next several years in rehabilitation of Moldovan railroad infrastructure and rolling stock. This sum does not include the costs on road electrification”, said Botnari.

The Ministry says that a successful implementation of the first stage of the project will allow ensuring an additional financing from the EBRD and the EIB, as well as the European Commission on the next stage of the railroad modernization.

“We already have an agreement with banks about raising European partners’ investments in the CFM up to 400 million euros”, said Minister Vasile Botnari.