Romanian capital Bucharest set to receive EIB loan tranche of almost €266 million to upgrade tram network

• Bucharest poised for EIB financing tranche to revamp tram system  
• EIB Vice-President Ioannis Tsakiris attends signing ceremony in Bucharest for loan instalment of close to €266 million  
• City to renovate tram tracks, introduce new vehicles and upgrade depots  

Romania’s capital Bucharest is set to receive a loan tranche of almost €266 million from the European Investment Bank (EIB) to upgrade the urban tram network.

The city will use the financing to renovate around 50 kilometres of tram tracks. It will also introduce new tram vehicles and upgrade depots to increase speed, reliability, comfort and accessibility on a network that serves around 500,000 people a day.

By encouraging a shift from private cars to public transport, the project also aims to reduce traffic congestion and improve air quality in Bucharest. The tram works are scheduled for completion by 2030.

“This investment marks an important step in Bucharest's transformation into a greener, more future-ready city. We are proud to support projects that deliver lasting impact for both people and the environment.”, said Vice-President Ioannis Tsakiris 

The tranche is part of a €300 million EIB loan for Bucharest infrastructure development that also includes energy-system upgrades. An initial €34 million tranche covered the project’s energy component, which involves replacing 106 km of district heating pipelines to enhance efficiency, reduce heat and water losses, and lower greenhouse gas emissions.

The EIB financing supports a broader €1.3 billion investment programme aimed at improving urban mobility and reducing the carbon footprint of energy supply in Bucharest, a metropolitan area home to more than 2 million people.

“Bucharest needs big investments in the tram network, it is over 50 years old and it is no longer efficient. This financing is extremely important for the city. We are committed to continuing this collaboration and to accelerating the development of projects that will shape the future of our city for generations to come,” said Bucharest Mayor Ciprian Ciucu, who also attended the signing ceremony.

The loan by the EIB advances its transport and energy priorities, including support for the 2015 international Paris Agreement to fight climate change. Bucharest’s investment programme also gets support from EU funds.

In addition, the EIB financing contributes to the EU’s “REPowerEU” programme to reduce dependence on fossil fuels.

The project builds on a partnership between the EIB and the Municipality of Bucharest that dates to 2002. Over the years, the EIB has supported a wide range of initiatives in the city including school renovations, water and wastewater improvements and energy-efficiency upgrades in public and residential buildings.

In addition to financing, the EIB has provided advisory support for project preparation, including guidance on public transport investments and technical assistance for district heating. This combined approach has enabled Bucharest to accelerate implementation while preserving budgetary resources.

The EIB is committed to supporting Bucharest in future priority investments through both financing and advisory services.

Background information

EIB Group  

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds-in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.

In 2023, the EIF together with six member states (France, Germany, Italy, Spain, Belgium and the Netherlands) launched the European Tech Champions Initiative, a fund of funds to scale-up innovative startups. This initiative has already enabled the creation of 12 European venture capital mega-funds and scaled up 38 companies, including 11 unicorns (with more than €1 billion in capital).

Photos of the EIB Group's spokespeople and headquarters, logo files and video B-roll for media use are available here.