EBRD and European Commission Join Forces to Enhance Moldova’s Rail Infrastructure

EBRD and European Commission Join Forces to Enhance Moldova’s Rail Infrastructure

(IN BRIEF) EBRD and the European Commission have approved a financial package to rehabilitate railway lines in Moldova. The €71 million project will receive a €20 million investment grant from the EU, a €23 million loan from EBRD, and €28 million from Moldova Railways. The rehabilitation will enhance Moldova’s economic development, facilitate transportation of goods from Ukraine to the EU, and increase food security. It will also reduce carbon emissions by shifting goods from road to rail transport. The project was launched at the EBRD’s 2023 Annual Meeting and will be implemented by Moldovan Railways. The EBRD has invested over €2 billion in Moldova to date.

(PRESS RELEASE) LONDON, 17-May-2023 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD), a multilateral developmental investment bank, and the European Commission have jointly approved a financial package to rehabilitate two vital sections of railway lines in Moldova. The project, with a total cost of €71 million, will receive a €20 million investment grant from the European Union, a €23 million loan from the EBRD, and €28 million from Moldova Railways.

The rehabilitation of Moldova’s North-South Rail Corridor will significantly contribute to the country’s economic development and facilitate the transportation of goods from Ukraine through Moldova to the European Union. In 2022, Moldova, like its neighboring country Ukraine, was granted EU candidate status.

The project was officially launched at the EBRD’s 2023 Annual Meeting in Samarkand, where EBRD President Odile Renaud-Basso and European Commission Executive Vice-President Valdis Dombrovskis marked the occasion. The financial support from the European Union is provided through the Rapid Response Component of its Neighbourhood, Development, and International Cooperation Instrument – Global Europe (NDICI-GE).

The responsibility for implementing the project lies with Moldovan Railways (Calea Ferata din Moldova, or CFM).

Given the uncertainty surrounding Ukraine’s grain export viability through seaports since Russia’s invasion last year, the project gains added significance as it seeks alternative routes to ensure global food security.

The primary objectives of the project are to enhance Moldova’s logistics and transit potential and improve regional infrastructure by rehabilitating the Valcinet-Balti-Ungheni rail section in the first phase, followed by the Chisinau-Cainari section in the second phase.

Furthermore, the project will facilitate the transportation of Ukrainian goods to major operational ports on the Black Sea, including Constanta, Romania, and Galati, Reni, Ismail, and Giurgiulesti in Moldova and Ukraine. These ports possess the capacity to handle a significant portion of Ukraine’s export requirements.

Shifting the transportation of goods from road to rail will also contribute to reducing Moldova’s carbon emissions. Currently, due to the network’s limited capacity, a majority of goods transported from Ukraine to the west via Moldova rely on road transport, which is more carbon-intensive. The project is expected to increase the network’s capacity and remove speed restrictions, thus facilitating greener transportation methods.

As Moldova’s largest institutional investor, the EBRD has already invested over €2 billion in 163 projects within the country.

Media contact:

Tel: +44 207 338 7805
Email: press@ebrd.com

SOURCE: EBRD