EIB Global, the specialized development finance arm of the European Investment Bank, has inked a €41.2 million loan agreement with the Moldovan government to revitalize the country’s railway infrastructure. Complementing this, a €12 million EU investment grant, unveiled at the Global Gateway Forum earlier this year, will significantly enhance Moldova’s internal connectivity and establish a vital export route for Ukraine, fostering regional stability and economic resilience.
The primary focus of the project lies in the rehabilitation of Moldova’s crucial north-south rail corridor, covering approximately 128 km of its total 370 km length. Key upgrades include the replacement of 50 switches at stations. Serving as a pivotal link from western Ukraine to key ports along the Danube and Prut Rivers, this corridor plays a vital role in providing access to international waters. By improving the existing railway connection between Moldova and Ukraine, the initiative aims to stimulate trade, particularly benefiting Ukrainian exports and the Moldovan economy under the EU-Ukraine Solidarity Lanes initiative.
Execution of the project falls under the responsibility of the Moldovan railway operator Calea Ferată din Moldova, focusing on the rehabilitation of the Vălcineț-Ungheni-Chișinău-Căinari corridor. This forms part of a broader nationwide reform initiative aimed at aligning Moldova’s railway network with EU standards and practices in the long term. The overall objective is to alleviate road and border traffic by transitioning freight from trucks to railways, promoting increased mobility, and minimizing environmental impact.
Image source: https://intermodalnews.eu/2023/12/19/moldova-eib-global-invests-e41-2-million-in-railway-infrastructure-rehabilitation/