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Romanian railway accelerates restructuring with EBRD loan
To enable the Romanian railway, Societatea Nationala a Cailor Ferate Romane (SNCFR) to continue its on-going restructuring, the European Bank for Reconstruction and Development (EBRD) is providing a US$ 72.6 million (ECU 58.8 million) loan.
Signing the loan agreement in Bucharest today, Josué Tanaka, Director of the EBRD's Romania country team, said: "The EBRD project will help create a railway organised along commercial lines and able to offer financially-viable services in a competitive market environment. The project will bring significant economic and social benefits by increasing the efficiency of the Romanian railway network and by providing an increased level of service to passengers. In addition, the project makes an important environmental contribution by supporting the development of rail transport."
As part of the project, 900 km of priority lines throughout the country will be renewed as well as vital signalling equipment. Locomotives, coaches and wagons will be upgraded and the telecommunications network to support the computerised integrated railway information system will be modernised. About 200 man-months of training will be provided to SNCFR to assist with marketing, financial management, accounting and human resources systems and to improve management skills and operations.
The overall project of US$ 420 million (ECU 340 million) is being cofinanced with the World Bank, the European Union Phare Programme and export credit agencies alongside SNCFR. The EBRD's loan, guaranteed by the Republic of Romania, is the first to be made by the EBRD in Romania under the Export Credit Loan Arrangement Technique (ECLAT) structure, whereby a portion of the Bank's loan will be disbursed pro rata with funds provided by, or supported by, an export credit agency which will be identified through the tendering process.
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