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  • EU bank will provide €24 million to Moldova’s national rail operator Calea Ferata din Moldova.
  • The operation will rehabilitate and modernise 233 km of railway along one of the country’s key transport corridors.
  • The operation is a part of the €74 million investment from the EIB in the rehabilitation and modernisation of Moldova’s rail infrastructure and rolling stock, co-financed with the EBRD.

The European Investment Bank (EIB), the bank of the European Union, will provide €24 million (in addition to €50 million already committed in 2016) to the Republic of Moldova and the Moldovan national rail operator Calea Ferata din Moldova (CFM) for the rehabilitation and modernisation of 233 km of railway along the Bender-Basarabeasca, Etulia and Giurgiulesti corridor.

The investment from the EU bank will improve safety and increase speed along one of the key transport corridors in Moldova, improving the competitiveness of rail freight services. The first part of the operation worth €20 million financed the modernisation of the CFM’s fleet of locomotives, and was co-financed by both the European Union and the European Bank for Reconstruction and Development (EBRD).

EIB Vice-President Teresa Czerwinska, who is in charge of operations in Moldova, said: “Safe, modern, efficient and reliable railways are key to sustainable economic growth in Moldova. Well-developed transport infrastructure and improved transport links will make movement of goods and services easier and enhance regional and pan-European cooperation. The EIB will continue to support Moldova’s economic competiveness, its transition to a carbon-neutral economy and its EU ambitions. We are happy to have found partners like Calea Ferata din Moldova with whom we will pursue this objective together.”

Ambassador Jānis Mažeiks, Head of the EU Delegation to the Republic of Moldova, said: “The Railways Restructuring Programme, financed with EIB, EBRD and EU support, is a good example of how we work together as Team Europe to connect the Republic of Moldova to the Trans-European transport network. Well-developed and modern transport infrastructure is key for economic growth. Reliable and high-quality railway connections contribute to the efficient movement of people and goods, which supports tourism and trade development. In addition, railways provide one of the most sustainable means of transport, contributing to the reduction of greenhouse gas emissions from transport. Modernising the railway industry is not an easy process, however I am sure that with dedication and support, good results will be achieved.”

Andrei Spinu, Deputy Prime Minister and Minister of Infrastructure and Regional Development said: “The Moldovan Railway has gone through a management crisis over the years. This cannot continue like this. The resuscitation of the sector is just beginning. This financial package, but also other sources of money allocated for this sector, we will make sure that they are managed efficiently, with full responsibility and discipline, in order to make this sector gain a new image.”

Prior to providing funding for the project, the European Investment Bank also provided technical support during the project preparation phase. The technical support allowed for a successful follow-up on the findings of the feasibility study and helped the Moldovan partner to establish investment priorities and define the project scope.

Background information

About the EIB in Moldova:

The European Investment Bank has been active in Moldova since 2007. To date the EIB invested close to €850 million in 25 projects across the country supporting EU policy priorities including projects in the transport, energy, SME, agriculture, municipal infrastructure (solid waste, water and waste water) and services sectors of Moldovan economy.

In response to COVID-19 crisis, the bank provided €20 million to ProCredit bank to support faster recovery of Moldova’s SMEs from the pandemic. The operation supported Moldova by reinforcing the national financial sector, and unlocked new sources of affordable financing for the SMEs to sustain jobs, maintain liquidity and operations, and continue fuelling the economic recovery. The loan was a part of Team Europe’s COVID-19 emergency response.

About the EIB and transport:

In 2020, the EIB invested over €8.1 billion in projects in transport sector. Between 2016 and 2020, the EIB signed finance contracts with a value of €56.5 billion in support of transport, of which €36.7 billion was for climate action. This represents two-thirds of our total transport lending. In 2020, the EIB signed new deals totalling €10.3 billion for 68 new transport projects within the European Union. Alongside investments in more traditional transport infrastructure to develop the Trans-European Transport Network (TEN-T), we provided financing for metro and tram lines, alternative fuels projects and electric charging networks.

About Calea Ferata din Moldova:

The national railway operator State Enterprise "Calea Ferata din Moldova" (CFM) marked recently 150 years since the beginning of its operations. CFM is the administrator of the railway infrastructure, operates freight and passenger transport, both domestically and internationally and it is one of the core links of the national transport system.

CFM also represents Republic of Moldova in the regional and international railway organizations like OSJD (Organisation for Co-operation between Railways), UIC (International Union of Railways) and CRT (Council for Rail Transport) of the Commonwealth of Independent States countries and actively collaborates with governmental stakeholders in the process of structural reform in the field of railway transport.