The Cabinet will tender the lending agreement between Moldova and the EBRD for the project to buy trains and to restructure the railroad infrastructure, which was signed in Chisinau on November 14, 2014, to Parliament for ratification, IPN reports.
The European Bank for Reconstruction and Development (EBRD) offers Moldova a loan of €52.5 million for restructuring the infrastructure of the state-run railroad company “Calea Ferata a Moldovei”. The money will be used to co-finance the purchase of ten new multipurpose trains and the rehabilitation of the railroad infrastructure. The European Union co-finances the purchase of trains with an investment grant of €5 million through the Neighborhood Investment Facility.
The EBRD loan is provided in two tranches. The second tranche of €27.5 million will be disbursed if the key objectives financed within the first tranche, including by the grant, are achieved. Overall, the company “Calea Ferata a Moldovei” needs €116 million for reconstruction works. The European Investment Bank will support the project by a loan equal to that offered by the EBRD.
In its December 3 meeting, the Cabinet also approved the financing agreement between Moldova and the EBRD for implementing the project “Thermoelectric system of Balti municipality” (CET-Nord), which was signed in Balti on October 30, 2014. This agreement will also be submitted to Parliament for ratification. The cost of the project is €10 million, €7 million of which represents the EBRD loan, while €3 million is the grant of the Eastern Europe Energy Efficiency and Environment Partnership Fund.
