EBRD lends €30 million for urban improvements in Timisoara, Romania

• EBRD lends Timisoara €30 million for district heating and urban regeneration
• Romanian city is part of EBRD Green Cities urban flagship programme
• European Union will provide €63.5 million co-finance for total of up to €108 million programme

The European Bank for Reconstruction and Development (EBRD) is lending €30 million to the Romanian city of Timisoara to co-finance, alongside the European Union (EU), priority investments in the district heating network and urban regeneration.

This project is financed under the EBRD Green Cities programme, supporting the city of Timisoara to implement priority actions identified in its Green City Action Plan (GCAP), approved in 2024.

As such, the EBRD finance, together with EU finance of €63.5m, will be used in two areas of investment.

The first is the rehabilitation and modernisation of the city’s district heating network, including replacing 27 km of old pipelines, new heating chimneys, valves and supports, and an automated monitoring system. The upgrades will improve efficiency while also preparing for future integration of renewable energy and waste heat sources.

The second investment area, urban regeneration in the historic Traian Square area, will involve improvements to public spaces, pedestrian and bike infrastructure, tram lines, green areas, and utility networks. LED street lighting, irrigation systems, and smart technologies like traffic management software and CCTV are also envisaged. These improvements are expected to result in emission savings as well as modal shift from private car use, expanding the share of non-motorised transport (cycling and walking) and public transport users.

Dominic Fritz, the Mayor of Timisoara: ‘’The loan we are contracting is a very advantageous one and has a clear purpose: financing two major development projects for Timișoara – the urban regeneration for Traian area and the modernization of the district heating system. For these projects, we already have over 60 million euros secured from European funds. These are investments that are transforming Timișoara, making the city more modern and more functional. These projects are not just about infrastructure, but about improving the quality of life for Timișoara’s residents and supporting the city’s development,”.

Timisoara is one of the largest Romanian cities with a population of more than 400,000, strong financial performance, good management and experience in implementation of large infrastructure projects with international financing.

The EBRD is a long-term investor in Romania since 1992 and it has invested more than €12 billion in 573 projects to date.