EIB Global invests in Moldovan railway infrastructure

EIB Global invests in Moldovan railway infrastructure
© European Investment Bank

EIB Global, the development finance arm of the European Investment Bank, has signed a €41.2 million loan agreement with the Moldovan government to rehabilitate railway infrastructure.

This financial commitment is supplemented by a €12 million grant from the European Union to enhance internal connectivity in Moldova and promote regional economic benefits.

The investment focuses on refurbishing 128 kilometres of Moldova's critical north-south rail corridor, facilitating trade and movement between Moldova, Ukraine, and Europe. This project aligns with the EU's Solidarity Lanes initiative and aims to reduce road congestion while boosting environmental sustainability in keeping with the EU’s Global Gateway goals.

This rehabilitation project includes the replacement of 50 railway switches at stations along the Vălcineț-Ungheni-Chișinău-Căinari corridor. The Moldovan railway operator, Calea Ferată din Moldova, will oversee the implementation. This effort is part of broader reforms to upgrade Moldova's railway network to meet EU standards and practices.

The project's objectives include easing road and border traffic by shifting freight transport from trucks to railways, enhancing mobility and reducing environmental impact.

Moldovan Minister of Finance Petru Rotaru highlighted the project's anticipated benefits, including shorter railway journeys, increased railway transport market share for large tonnage goods, reduced load on road infrastructure, minimised road wear and tear, and enhanced road traffic safety.

EIB Vice-President Teresa Czerwińska emphasised the importance of strengthening Moldova's rail network and improving its connectivity with Ukraine and Europe. She affirmed EIB's commitment to supporting Moldova in aligning its infrastructure with EU standards, facilitating deeper integration into the EU market, and supporting its path towards EU accession.

The EU Ambassador to Moldova, Jānis Mažeiks, noted the investment's role in strengthening Moldova's railway infrastructure and improving connectivity with Ukraine and Europe. He stressed the importance of upgrading the country’s transport infrastructure in light of Moldova's candidacy and aspirations to join the European Union.

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