EU Boosts Moldova’s Forestry and Railway Infrastructure with €212 Million Investment

EU Boosts Moldova’s Forestry and Railway Infrastructure with €212 Million Investment

(IN BRIEF) The European Union has announced two key investments to support Moldova’s development: a €200 million loan from the European Investment Bank (EIB) for forest expansion and a €12 million EU grant to upgrade the country’s railway infrastructure. The forestry loan aims to rehabilitate 63,000 hectares of degraded land and expand Moldova’s forest area by 145,000 hectares, while the railway grant will modernize key transport routes, strengthening connections with Ukraine. These investments aim to enhance Moldova’s environmental sustainability, economic resilience, and regional connectivity.

(PRESS RELEASE) LUXEMBOURG, 17-Sep-2024 — /EuropaWire/ — The European Union is ramping up its support for Moldova through significant investments aimed at bolstering the country’s economic and environmental resilience. Announced at the Moldova Partnership Platform conference in Chișinău, the European Investment Bank (EIB) and the Moldovan government signed two agreements: a €200 million loan for forestry development and a €12 million EU grant to modernize Moldova’s railway infrastructure.

The €200 million EIB loan will help rehabilitate 63,000 hectares of degraded land, expand Moldova’s forest area by 145,000 hectares, and address issues like soil erosion and biodiversity loss. Additionally, the €12 million EU grant is targeted at improving Moldova’s railway system, enhancing internal connectivity, and strengthening export routes to Ukraine, in line with the EU’s Solidarity Lanes initiative.

Moldovan President Maia Sandu highlighted the importance of these projects for the country’s green transition and economic development, while EIB Vice-President Teresa Czerwińska emphasized the EU’s commitment to Moldova’s sustainable development and closer ties with Europe. The initiatives will play a crucial role in boosting Moldova’s regional stability and aligning with its long-term strategic goals.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment to contribute towards EU policy goals.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner in the Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices around the world.

EIB Global and Moldova: Since establishing its presence in Moldova in 2007 and following the signing of the €200 million Moldova Forest Development Programme at the Moldova Partnership Platform conference in 2024, the EIB’s total investment in the country has reached about €1.5 billion across more than 30 projects. These investments support EU policy objectives in various sectors, including energy security and energy efficiency, transport, healthcare, digitalisation, private sector growth and forestry. As the European Union’s financing arm, the EIB continues to support Moldova’s development and path towards EU integration through its strategic investments.

Media Contact:

Olga Sushytska
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Press Office

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SOURCE: European Investment Bank