December 15 (SeeNews) - The European Commission said on Friday that the European Investment Bank (EIB) is providing Moldova with a 41.2 million euro ($45 million) loan to enhance transport connections and promote lasting economic benefits.
This loan will be complemented by an EU grant of 12 million euro.
The project is aimed at improving rail infrastructure and strengthening the Solidarity Lanes, which provide alternative transport routes for Ukraine in the context of Russia’s aggression, the Commission said in a press release.
“Some 128 kilometres of track on the North-South axis will be renovated, with great benefits for the Moldovan economy. The project will also strengthen the Solidarity Lanes, where Moldova and Romania are the main actors on the Danube Corridor, ensuring the transit of almost 70% of the products exiting Ukraine,” Adina Valean, EC Commissioner for Transport, said.
The project will reduce road congestion and increase environmental sustainability in line with the EU’s Global Gateway. Between 2021 and 2027, the Global Gateway strategy sets to mobilise investments worth up to 300 billion euro to boost smart, clean and secure links in digital, energy and transport health, as well as strengthen health, education and research systems across the world.
In addition to unlocking the transportation of over 58 million tonnes of Ukrainian grain since May 2022, the Solidarity Lanes are also Ukraine’s main trade pathway for other goods.
The Commission decided to open accession negotiations with Moldova on December 14. The country was given candidate country status in June 2022, following its application for membership in March.
($=0.9149 euro)