EU, EIB to provide loan to Moldova as part of North-South railway corridor

The European Union and the European Investment Bank (EIB) will provide Moldova with 53.2 million euros for the repair of the Valcinet – Ocnita – Balti – Ungheni – Chisinau – Cainari railway corridor, said Minister of Infrastructure and Regional Development Andrei Spinu, Report informs referring to Moldova’s media.

The money will be used to restore 128 km of railways, which are in poor condition, creating risks for rail traffic and potentially disrupting regional supply chains.

In this regard, the government approved the start of negotiations and approval of the signing of a financing agreement.

The allocated amount includes 41.2 million euros in the form of a loan for 30 years on preferential terms from this bank and a grant of 12 million euros from the EU.

The implementation of the project will reduce transportation time, the load on road infrastructure and also increase the volume of transportation of large-tonnage and oversized cargo by rail.

Rehabilitation of sections of the North-South railway corridor will contribute to the economic development of Moldova and will simplify the transportation of goods from Ukraine to the EU.