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European Bank approves ECU 43.6 million to improve Slovenia's rail network
A loan of DM 60.3 million and US$ 15.2 million (ECU 43.6 million equivalent) to Slovenia Railways to improve the condition of its core rail network serving both domestic and international transit traffic was approved on Tuesday, 27 July 1993 by the Board of Directors of the European Bank for Reconstruction and Development. This will be the Bank's first loan in the railway sector.
"The Bank's financial support for Slovenia's railway sector is particularly important during a period in which economic recession and political disruption prevail in the region," said Mario Sarcinelli, Vice President of the European Bank. "The Bank's presence in the railway sector will support institutional change, clarify responsibilities between the government and Slovenia Railways, and help improve efficiency."
The loans will be used to renew track and catenary on selected rail sections, support the implementation of restructuring measures, provide computer equipment for management information systems, and conduct a feasibility study of a direct Slovenia/Hungary rail link.
The total cost of the project is US$ 104 million: the European Bank's loan which amounts to US$ 50.6 million, a proposed US$ 44 million loan from the European Investment Bank, US$ 8.4 million from Slovenia Railways, and US$ 1 million from technical cooperation funds.
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