The Government of Moldova opens negotiations on the draft financial protocol with the Government of France on the financing of the Chisinau – Ungheni railway infrastructure modernization project. Under the protocol, the Government of France will provide a sum of €75.77 million to improve the railroad infrastructure on the given section, IPN reports.
More exactly, the sum will consist of a loan of at most €35 million from the French Treasury and a bank loan guaranteed by Bpifrance Assurance Export in the name of the Government of France to the value of €40.77 million. The bank loan could be increased depending on the definitive price revision sum, in a proportion of 50% of the value of the financial assistance.
According to Minister of Infrastructure and Regional Development Lilia Dabija, the signing of the protocol will help to develop and modernize the infrastructure on the Chisinau-Ungheni railroad section of over 128 km and is part of the 446 km Vălcineț-Balti-Ungheni-Chisinau-Căinari railroad.
The modernization works include the replacement of the signaling system and installation of facilities to ensure autonomous functioning when the supply of electricity is not working, replacement of rails, repair of railroad passages and purchase of vehicles for maintaining the national rail transport network. As a result, railroad safety will be increased, travel speed could be raised and the length of passenger and freight transportation will be reduced, noted the minister.
