Moldova’s Railways received a loan of €52.5 million from the European Investment Bank for purchasing new locomotives and modernizing infrastructure. This is repayable in 15 years, at an interest rate of 1.5% a year, IPN reports.
In the ceremony to sign the lending agreement, Minister of Transport and Road Infrastructure Iurie Chirinciuc said the loan forms part of the same package as the loan provided by the EBRD, to the value of €50 million. Thus, investments in Moldova’s Railways amount to over €100 million.
“We launched this project in 2014. Now we signed the financing contract. The money is intended for reorganizing and reforming Moldova’s Railways. The value of this project is actually €500 million. This is the first stage of financing and remedying the situation at Moldova’s Railways. We thank the investors for their confidence and promise to do our best not to disappoint them and the Moldovan people,” stated the minister.
Head of the EIB Representative Office in Moldova Antonio Castillo said the goal of the Bank is to provide maximum assistance to the Republic of Moldova in reorganizing, restructuring and reforming its railway transport sector. “We are honored to form part of the same consortium as the EBRD. We hope that today we took a first step and will offer maximum support for bringing the Republic of Moldova closer to the European Union,” he stated.
Moldova’s Railways director Iurie Topala said that a tender contest to purchase 15 new locomotives will be held soon. The winner will get the money directly from the EIB so as to exclude any illegal financing scheme.
