The EBRD is investing a further €13 million to support the completion of a tram track and street rehabilitation programme in the city of Arad, a key commercial centre in western Romania near the Hungarian border.
The new loan is part of the EBRD's response to the global economic crisis, providing finance for an important infrastructure development project in the absence of alternative commercial funding.
The credit is a follow up investment to the Bank’s original €20 million syndicated loan from 2005 to finance tram track and street rehabilitation in the city of Arad.
The new loan will enable Arad municipality to continue to implement a comprehensive tram track rehabilitation programme, financed partly by the initial loan. The loan increase will be used to complete the original tram track and street rehabilitation programme and to finance the second phase of the modernisation of tramway infrastructure and city centre streets.
The city is an important Romanian commercial centre and is one of the most economically-developed urban areas in Romania, whose commercial significance will be further enhanced by a better functioning transport infrastructure.
This additional facility will allow the Arad city to complete the rehabilitation programme initiated in 2005.