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Romania on track for better rail services with EBRD support
€22.5 million loan helps improve rail efficiency, cut costs
The EBRD is lending Romania €22.5 million to help modernise the country’s rail
electricity distribution network to reduce energy costs and increase
efficiency.
The 12-year loan to Romania inclusive of a four year grace, with SC
“Electrificare CFR” – S.A. (CFRE) - the state-owned railway electricity
distributor as the beneficiary, will help upgrade and rehabilitate rail
electric power supply equipment, and purchase new maintenance vehicles for
checking and repairing overhead cables.
Around a third of Romania’s 10,700km railway network operates using
electricity, with the majority of the electrical equipment dating back to the
1970’s, much of it old, and often leading to high costs for maintenance.
Hildegard Gacek, EBRD Director for Romania, said this loan will help improve
and speed up rail transport in Romania by refurbishing railway power lines,
benefiting its many users. The project will help to replace outdated
electrical equipment that often breaks down, leaving much of the rail track
inoperable for long periods.
The project will be implemented by CFRE, a wholly-owned subsidiary of the
Romanian Rail Infrastructure Manager, CFR SA, established in 2004 to oversee
the maintenance, installation and rehabilitation of distribution
infrastructure that supplies electric power to the railways.
The EBRD is Romania’s largest single investor, having committed more than €2.8
billion in over 150 projects. This latest loan is part of the Bank’s strategy
to help develop transport infrastructure across the country. It adds to a €145
million loan to Romania signed earlier this month to build a bypass and help
fix flood-damaged roads.
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