The European Bank for Reconstruction and Development (EBRD) said on Monday it is providing a 15 million euro ($15.9 million) loan to the Romanian eastern city of Iasi for the acquisition of 50 new buses with low carbon emissions.
The introduction of the new vehicles will support the upgrade of public transport in Romania’s second largest city with a population of 400,000, the EBRD said in a statement.
The new, environmentally-friendly buses, which comply with the European Commission's Euro 6 legislation on diesel engine emissions, will result in a more pleasant and efficient commute as well as cleaner air for the population, it added.
As part of the financial package the EBRD will also provide a grant of 250,000 euro to enable the municipality to establish a transport authority operating on commercial principles to improve the quality of services. The bank will also help the city set up a regulatory body to manage public transport services in the metropolitan area of Iasi.
"The economy and the population of Iasi have grown considerably over the past decade. The modernisation of public transport will bolster this growth and contribute to the city’s further development as an important centre for industry, tourism and culture," EBRD regional director for Romania and Bulgaria Matteo Patrone said.
This loan to the city of Iasi is the third project under the EBRD’s new programme entitled Romania Framework for Sustainable Mobility and Access to Road Transport, or SMART, which finances improvements in public transport infrastructure and services in the country.
The EBRD is a leading institutional investor in Romania, having invested over 7.3 billion euro to date in 384 projects and mobilised more than 14 billion euro from other sources of financing.
($=0.9395 euro)