Romania: EUR 395 million to support the modernisation of Bucharest metro line

Romania and European Investment Bank have finalised negotiations for a EUR 395 million loan to support the modernisation of Bucharest metro network, Phase IV, Line 5 Drumul Taberei – Pantelimon, section Drumul Taberei – Universitate. The loan is complementary to the previous investments dealing with the modernisation of the underground system of Bucharest that were undertaken with the EIB support and will contribute to the extension and operational efficiency of the public transport system.

The Finance Contract was signed on November 12, 2009 by the Finance Minister, Mr Gheorghe Pogea, and EIB Vice-President, Mr Matthias Kollatz-Ahnen. The loan amounting to EUR 395 million was contracted in accordance with public debt legislation with the funds being disbursed until December 31, 2014 and carrying a flexible repayment period for up to 25 years.

The project for the modernization of the Bucharest Metro, having a total estimated value of EUR 883 million, aims at increasing the urban transport efficiency in the city of Bucharest, through the construction of a new metro line and the purchase of rolling stock of 37 new subway trains that will operate on this new line and also  replace the obsolete trains running on the existing network. The project is to be carried out by SC METROREX SA, with the completion date set for end of 2015.

Background:

The mission of the EIB, the European Union's bank, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investments. Since 1990, the EIB's lending commitment in Romania has reached approx. EUR 7 billion to finance investment projects relevant for Romania's successful integration into the EU.

The EIB is currently appraising projects for financing in Romania that would increase the Bank's support for priority sectors such as the environment, sustainable energy and SMEs. This is in line with the EIB's effort to raise the overall lending volume to reduce the effects of the current economic crisis in Romania.