The European Investment Bank (EIB) is lending EUR 16.3 million for the modernisation of the public transport system in Oradea, one of the most important cities in north-west Romania
The loan is being provided to the Municipality of Oradea and the final beneficiary is Regia Autonoma Oradea Transport Local (OTL). This is the EIB’s first loan granted directly to a Romanian municipality or county. The EIB funds will contribute to finalising the process of acquiring ten ultra-low-floor trams launched by the municipality last year and will finance the future acquisition of twenty new-generation buses. The new rolling stock in Oradea will partly replace the existing trams and buses in OTL’s fleet, helping to improve the quality and capacity of public transport services in the city.
The new rolling stock will increase passenger comfort, improve public transport accessibility for disabled people, upgrade traffic safety and reduce environmental impacts with lower CO2 emissions and less noise pollution. This modernisation is expected to promote the use of public transport by both Oradea’s citizens and city visitors alike as part of an ongoing programme of investment by the Municipality.
Mr Matthias Kollatz-Ahnen, the EIB Vice-President responsible for the Bank’s operations in Romania, commented: “With the loan provided to the Municipality of Oradea the EIB has confirmed the priority it gives to direct lending to local authorities in the new Member States. By providing financial resources for regional development directly to the local authorities concerned, particularly for the upgrading of municipal transport infrastructure, the Bank will help to cover local investment needs focused on increasing the quality of life of citizens and strengthening regional competitiveness”.
The mission of the EIB, the European Union’s long-term financing institution, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investment. Since 1990, the EIB’s lending in Romania has reached EUR 5.1 billion to finance investment projects relevant for Romania’s successful integration into the EU. Since Romania joined the EU in 2007, the EIB has sought to play an important role in supporting the country’s successful development within the Union, building on the Bank’s past experience not only in Romania but also with previous enlargements.
The City of Oradea, the administrative capital of Bihor County with 207 000 citizens, is regarded as a development pillar in north-west Romania. The transport system in Oradea is undergoing a general renewal process, including an institutional transformation and incorporation of the transport operator into a publicly-owned joint-stock company, which will require amendments to the transport service concession contract between the City and the operator.