The government of Romania approved the beginning of negotiations with the European Investment Bank (EIB) for two loans of EUR 300 million each, aimed at financing two railway modernization projects worth over EUR 3.7 billion in total, of which EUR 2.2 billion are funded under the Recovery and Resilience Facility (RRF).

The first project regards the electrification and rehabilitation of the Cluj-Napoca - Oradea - Episcopia Bihor railway line (160km), Profit.ro reported. The Bank's Board of Directors approved this financing in February. 

The project is estimated at EUR 1.975 billion (including VAT and the purchase of trains), the related allocation from the RRF being in the amount of around EUR 1.1 billion, with the difference being covered by the Romanian state.

The second project regards the modernization of the railway line Caransebeș - Timișoara - Arad (160km). The Bank's Board of Directors approved this financing in February. 

The estimated value of the project is EUR 1.758 billion (including VAT and the purchase of trains). The largest part of this amount - EUR 1.1 billion - will be provided by the RRF, with the difference being funded by the Romanian state.

iulian@romania-insider.com

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