European Investment Bank provides 41.2 million euros for repair of railway corridor from Moldova

Chisinau, 15 March /MOLDPRES/ - The European Investment Bank will provide Moldova with a loan worth 41.2 million euros. The money will be used for the repair of the railway corridor, Vălcineț – Ocnița – Bălți – Ungheni – Chișinău – Căinari. The contract on financing to this effect was ratified by the parliament.  

Also, Moldova will benefit from a grant worth 12 million euros on behalf of the European Union for the carrying out of the works.

The loan’s repayment period is up to 30 years and the interest rate is 5 per cent.

According to the authorities, the repair of this railway corridor is necessary, as several segments are in a lamentable state. This generates risks and losses for the business environment. Moreover, the speed and mass restriction on this segment increase the costs of the transport’s logistics.  

This railway segment is an important one, as it provides the railway connection with the industrial environment, as well as the export, import and transit of goods from Romania and Ukraine. The railway corridor, Vălcineț – Ocnița – Bălți – Ungheni – Chișinău – Căinari, also makes connection with the railway corridor, Căinari – Cimișlia – Basarabeasca – Giurgiulești, which is used inclusively for the logistics of goods carried in the ports of the Danube river and the Black Sea.