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EBRD supports urban transport improvement in Braşov
€30 million loan to upgrade roads and acquire 100 buses
Braşov, a major Romanian city located in the heart of the country, will
significantly improve its urban and public transport using a €30 million loan
from the EBRD. Braşov, with its rich historic heritage and picturesque
landscape, has for many years been a major tourist destination.
The Bank’s loan is being divided equally between the City of Braşov and Regia
Autonoma de Transport Braşov, a public Romanian transport company which is
under the City’s authority. It is the first time the Bank has lent directly to
a municipal transport company in Romania without a guarantee from the city. A
portion of the loan will be syndicated to international commercial banks.
The City of Braşov will use its portion of the EBRD loan to upgrade key roads
and further improve transport management across the city, while the Company
will rationalise transport services and acquire around 100 new buses.
Thomas Maier, Director for the EBRD’s Municipal and Environmental
Infrastructure team, said this important project will improve urban transport
in Braşov benefiting both the city’s residents and its many tourists.
Furthermore, it will provide a demonstration effect showing how other
municipal companies open to reform can gain access to long-term finance
without municipal or sovereign guarantees, he added.
Since having supported improvements in many Romanian cities’ water and
waste-water systems over the past decade, the EBRD is now turning its eye to
the urban transport sector across the country. Since June this year the Bank
has provided Arad and Sibiu with loans that are helping to improve their urban
transport infrastructure.
The EBRD is the largest investor in Romania having committed more than
€2.5billion in 130 projects.
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