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EIB Global offers €41.2 million loan to help Moldova rehabilitee railway infrastructure

EIB Global, the European Investment Bank’s development arm, is lending €41.2 million to support the rehabilitation of Moldova’s railway infrastructure. The loan will be accompanied by a €12 million grant from the EU, which will improve Moldova’s internal connectivity and offer a crucial export route for Ukraine, fostering regional stability and economic resilience.

The project’s central point is the rehabilitation of Moldova’s north-south rail corridor. Of its total length of 370 km, approximately 128 km will be rehabilitated, including the replacement of 50 switches at stations. This corridor serves as a vital link from western Ukraine to key ports along the Danube and Prut Rivers, providing access to international waters. The enhancement of the existing railway connection between Moldova and Ukraine is designed to stimulate trade, promising significant benefits for Ukrainian exports and the Moldovan economy, especially in the context of the EU-Ukraine Solidarity Lanes initiative.

The project will be implemented by the Moldovan railway operator Calea Ferată din Moldova and will cover the rehabilitation of railway infrastructure on Moldova’s Vălcineț-Ungheni-Chișinău-Căinari corridor. This effort is part of an overarching countrywide reform to improve the existing rail infrastructure and bring Moldova’s railway network in line with EU standards and practices in the longer term.

This initiative will ease road and border traffic by shifting freight from trucks to railways, enhancing mobility and reducing environmental impact. It aligns with the EU Global Gateway’s focus on sustainable transport, contributing to greener, more efficient logistics.

Moldovan Minister of Finance Petru Rotaru stated that 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, minimizing road wear and tear, and enhancing road traffic safety.

EIB Vice-President Teresa Czerwińska, who is in charge of operations in Moldova, said that as Moldova becomes a critical hub for trade and transit, improving its transport infrastructure is vital. “I am delighted that our investment will help strengthen the resilience of Moldova’s rail network and improve its connectivity with Ukraine and Europe, so bringing considerable economic advantages. Given Moldova’s EU integration aspirations, we are firmly committed to assisting the country in aligning its systems and infrastructure with EU standards, thus facilitating its deeper integration into the EU market and supporting its path towards EU accession. Moldova can rely on the EU bank for both financial and technical support in enhancing its infrastructure with quality projects.”

EU Ambassador to Moldova Jānis Mažeiks said that this investment will strengthen the resilience of Moldovan railway infrastructure, improve Moldova’s connectivity with Ukraine and Europe, and benefit the Moldovan economy. “As Moldova becomes an integral part of the trans-European transport system (circulation of goods, people and services), upgrading the country’s transport infrastructure is imperative. In the context of Moldova’s candidacy role and its aspirations to join the European Union, we will continue to support the country and upgrade all the necessary routes.”

EIB Global is the EIB Group’s new specialized arm devoted to increasing the impact of international partnerships and development finance outside the European Union. EIB Global is designed to foster strong, focused partnership within Team Europe and as part of the EU Global Gateway strategy, alongside fellow development finance institutions and civil society.

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