MOLDOVA RAIL INFRASTRUCTURE AND ROLLING STOCK FL

Promoter – Financial Intermediary

IS CALEA FERATA DIN MOLDOVA

Location

• Moldova, Republic of

Description

The purpose of the project is to improve and modernise both Moldova's railway network and rolling stock. It consists of a framework with two components: (i) the acquisition of 11 mainline diesel locomotives suitable for both freight and passenger services and the associated maintenance equipment and (ii) the rehabilitation of selected sections of the railway infrastructure. The project is part of a broader programme, which also includes restructuring of the Moldovan railway sector in order to enable it to provide adequate services and to compete with other modes of transport.

Objectives

The proposed operation is in line with the objectives of the 2014-2020 External Lending Mandate as it contributes to the development of economic infrastructure, in particular transport. Being partially located on the TEN-T (Trans-European Transport Network) as extended to specific neighbouring countries based on high-level agreements on transport infrastructure, this project will play a role in deepening the integration with the European transport system. By promoting sustainable means of transport the project also contributes to climate change mitigation, a cross-cutting objective of the mandate.

Comments

This operation is covered by the EU Guarantee for EIB loans outside the EU.

Sector(s)

• Transport - Transportation and storage

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 74 million

Total cost (Approximate amount)

EUR 165 million

Environmental aspects

The locomotives component does not require an environmental impact assessment (EIA). The need for an EIA for the renewal of the associated maintenance depots is being analysed during the appraisal. Concerning the infrastructure rehabilitation component, the project is expected to be mainly within the existing right of way with some short sections on new alignment; therefore the potential negative environmental and social impact is likely to be minor. If situated in the EU, the project would likely fall under Annex II of Directive 2011/92/EU and therefore be subject to screening. The compliance of the procedures in place with the EIB's environmental and social standards will be analysed during the appraisal.

Procurement

The promoter is a public entity. The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Signed - 26/09/2016