EIB Global invests €41m in railway infrastructure rehabilitation in Moldova (Photo EIB)

MOLDOVA: The government has signed a €41·2m loan agreement with the European Investment Bank’s development finance arm EIB Global to finance rehabilitation of the Vălcineț – Ungheni – Chișinău – Căinari rail corridor.

Along with a €12m EU grant announced earlier this year, this will improve internal connectivity and offer an export route from western Ukraine to Danube and Prut river ports to support regional stability and economic resilience.

Around 128 km of the 370 km corridor will be renewed.

The project is to be implemented by national railway CFM, and forms part a wider programme to bring the country’s rail network into line with EU standards and practices.

‘The implementation of the project will result in several benefits such as reducing the duration of railway journeys, increasing the market share of the railway transport for large tonnage and gauge goods, reducing the load on road infrastructure, minimising road wear and tear, and enhancing road traffic safety’, said Minister of Finance Petru Rotaru on December 15.