|2016-21 – Moldova, Railways restructuring project|
|Rail project. Upgrade|
|The project is intended to finance: |
The new locomotives will be primarily used on the same corridors.
The Project shall also aim to support the railway restructuring reform process, through:
|IS Calea Ferata din Moldova (CFM, the national railway operator)|
|Total project cost EUR 116.7 mln.|
EBRD investment EUR 25 mln.
EIB investment EUR 50 mln.
The project is expected to benefit from an investment grant provided by the Neighbourhood Investment Facility of the European Commission for the acquisition of locomotives in the amount of up to EUR 5 million.
The EBRD will support the preparation of railway reform strategies by mobilising technical cooperation funding for consulting services, as follows:
An implementation of an energy management information system is expected to be co-funded through the EBRD Shareholder Special Fund.
|EIB finance contract under negotiation. ToR of the feasibility study under preparation.|
|Expected impacts on transport, environment, social, other|
|The project is absolutely necessary to maintain the existing railway traffic and is part of a broader programme, which also includes restructuring of the Moldovan railway sector in order to enable it to provide adequate services and to compete with other modes of transport. Main benefits include time savings for both passenger and freight services, which should prevent modal shift from rail to road and therefore contribute to a limitation of pollutants and green-house gas emissions, as well as noise reduction. Reduction in vehicle and infrastructure operating cost will lead to improvement in the financial sustainability of the national railway company. |
Environmental impacts: Environmental and social due diligence comprised a corporate environmental, health and safety (EHS) audit of CFM and an audit of CFM's Human Resources (HR) capacity, systems and current retrenchment planning. As part of the restructuring programme, the Bank is planning to provide technical cooperation support for the development of a corporate EHS system based on ISO 14001 and OHSAS 18001 standards. The Bank will also provide technical cooperation support for the development of a retrenchment plan.
|Source of Funding|
|EBR; EIB |
The project is expected to benefit from an investment grant provided by the Neighborhood Investment Facility of the European Commission for the acquisition of locomotives in the amount of up to EUR 5 million. The project is expected to be co-financed with the European Investment Bank.