EU helps Moldova buy new locomotives
- Connectivity, energy efficiency, environment and climate change
- Transport
New rolling stock acquired by Moldova’s state-owned railway company Calea Ferată din Moldova (CFM) will deliver important benefits for the country’s trade, its economy and for people’s lives.
Twelve modern diesel locomotives purchased thanks to joint financing from the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the European Union (EU) arrived in Chisinau on 14 July. The engines will consume less energy than the current stock and ensure safer, more efficient transport of goods and passengers within Moldova and to its trading partners abroad.
Ambassador Peter Michalko, Head of the EU Delegation to Moldova, said: “Today, the EU is once again proving its support to the Moldovan people. The 12 locomotives are acquired with support from the European Union, the EU bank (the EIB) and our partners from the EBRD, with the EU contribution financed by the money of EU citizens. This event today marks an important step towards making Moldova greener and more sustainable.”
The acquisition of the locomotives is part of a large project financed by the EBRD, EIB and EU that also includes the rehabilitation of railway infrastructure and comprehensive reform of CFM to improve safety, efficiency and corporate governance.
The tender for the upgrade of railway infrastructure is currently underway and the company is implementing an action plan to improve corporate governance. In addition, Moldova’s parliament is due to adopt a new Railway Code, legislation based on EU directives that aims to bring the country’s railway sector in line with the Association Agreement with the EU.
The total project cost is €110 million, of which €5 million is an investment grant from the EU’s Neighbourhood Investment Facility (NIF) and the remainder from loans by the EBRD and EIB.
The EU is Moldova’s largest donor and has to date provided over €1 billion in grant funding.
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