Case Studies > Modernising railways in Moldova
Modernising railways in Moldova
In a major step towards supporting the modernisation of Moldova’s railways, we provided a €52.5 million loan to the state-owned railway company, Calea Ferată din Moldova.
With this support, along with additional funding from the European Investment Bank, Calea Ferată din Moldova will co-finance the acquisition of 10 new multi-purpose locomotives and the rehabilitation of rail infrastructure. The loan will also support a broader reform to improve safety and efficiency in the railway sector. The Bank’s donors will provide technical cooperation to develop and support action plans aimed at restructuring the railway sector and strengthening institutional capacities in key areas such as the environment, health and safety, procurement and corporate governance. We will also help the company to reduce its energy consumption through the development of an energy management plan and energy systems.
With the support of donors we are helping Calea Ferată din Moldova to improve its environmental and safety management and implement restructuring plans in a transparent and fair manner. The Bank aims to work with the company to reduce headcount through retirement or voluntary separation where possible, and assist in training and post-employment support.