Moldova will borrow €300 million from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) for the rehabilitation of roads and modernization of railways. On May 16, the Government set up a group that will negotiate the financing agreements. The group consists of specialists of the Ministry of Finance, the Ministry of Economy, the Ministry of Transport, the State Road Administration and the state-run Moldova’s Railways, IPN reports.

The money will be used to rehabilitate 290 km of national and regional roads. The EBRD and EIB agreed to allocate €50 million for renovating the rolling stock. Also, €25 million offered by the EBRD will go to modernize 8-10 diesel engines with four railcars made in Hungary. Their working life expired and they are now used in internal traffic.

The EIB will provide €20 million for modernizing 18-20 maneuvering locomotives for pulling passenger and freight trains and for renovating four train depots in Chisinau, Basarabeasca, Balti, and Bender. Furthermore, €5 million will be allocated by the EBRD as non-refundable technical assistance for implementing the restructuring plan at Moldova’s Railways.