The European Bank for Reconstruction and Development will increase the funding allocated for rehabilitating Moldova’s rail infrastructure, from 27.5 million euros to 51 million euros. The Government today approved a draft amendment in this respect to the loan agreement between EBRD and Moldova.

Of the total amount, 49.7 million euros will go for infrastructure rehabilitation and 1.25 million euros for technical supervision of the work on the Bender-Causeni-Basarabeasca-Etulia-Giurgiulesti railway section. The loan repayment period is 15 years, with the agreement covering the period 2017-2032.

The amount initially borrowed was 55 million euros, of which the EBRD allocated 27.5 million euros, and the European Investment Bank 30 million euros. After evaluating the costs based on feasibility studies, the two entities agreed that the amounts allocated are insufficient and an increase is needed.

Also today, the Government approved a draft amendment to an older loan agreement with EBRD aimed at buying locomotives. Initially it was planned to buy multipurpose locomotives suitable for both passenger and freight transportation. The amendment changes this to locomotives specifically intended for freight service.