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EBRD helps improve public transport in Romania
15 milliom loan to improve tram network in the city of Iasi
The city of Iasi, the third largest in Romania, will benefit from an improved
public transport infrastructure with the help of a €15 million EBRD loan for
rehabilitation of the city’s tram network. A €5 million portion of the loan is
syndicated to Raffeisen Zentralbank Österreich AG.
The loan, with a maturity of 13 years, will be used to finance the
modernisation of 16.4 kilometres of tram infrastructure, help reduce the noise
and vibrations in the city centre, increase the speed of trams on the renewed
sections and improve safety standards.
The project includes technical cooperation funds to assist the city with
restructuring and improvement of public transport services in Iasi, including
tendering and regulation of mini-bus services. The Iasi Public Transport
Company will receive advice on commercialisation and identification of
cost-effective outsourcing options. SECO, the Swiss State Secretariat for
Economic Affairs, also supported the project by funding a feasibility study
and providing technical, economic and environmental assistance.
“The EBRD recognises the importance of investment in municipal infrastructure
and providing long-term finance to municipal companies open to reform,” said
Thomas Maier, EBRD Director for Municipal and Environmental Infrastructure. In
an effort to assist Romanian municipalities address public transport problems,
the Bank has already been involved in urban transport projects in the towns of
Arad, Brasov and Sibiu resulting in excellent relationships with these cities
and developing potential for more transition-intensive projects.
The EBRD is one of the largest investors in Romania, having committed more
than 3.2 billion in around 115 projects. In the Municipal and Environmental
sector along, the Bank has committed over 400 million in such projects in
nearly 18 municipalities across the country.
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