The state-run company “Calea Ferata din Moldova” (“Moldova’s Railways”) will receive €5 million from the European Bank for Reconstruction and Development (EBRD) for buying engines. The grant agreement between the Republic of Moldova and EBRD was ratified by Parliament on March 25. The grant will be provided from the Neighborhood Investment Facility, IPN reports.
Deputy Minister of Transport and Road Infrastructure Sergei Bucataru, who presented the draft agreement, said the grant is offered to co-finance the purchase of 10 engines, which are vital for the company. Their purchase will lead to lower prices of the services provided by Moldova’s Railways and will contribute to enhanced competitiveness. The money will also be used to increase energy efficiency at the company and to monitor the fuel consumption of the existing engines.
According to Sergei Bucataru, the high prices of the services provided by Moldova’s Railways are due to the fact that all the locomotives are old. Only three of the 125 existing engines do not have the operational life expired. Most of these are 35-40 years old. Thus, the company’s annual maintenances and repair costs exceed 150 million lei.
The grant agreement was signed on November 10, 2015. The loan is repayable in 15 years with a grace period of three years.
