May 26 (SeeNews) - Romania's government said on Friday that it approved a 600 million euro ($643.9 million) loan agreement with the European Investment Bank (EIB) that will support the construction of sections of A7 motorway.
The loan will be used to finance works on parts of the 319 km-long Ploiesti-Pascani section of A7, the government said in a press release.
The total value of the project amounts to 6.716 billion euro, of which 1.949 billion euro are allocated through Romania’s National Recovery and Resilience Plan. The balance will be provided through state financing, with the 600 million euro EIB loan intended to partially cover the disbursement of state funds.
The loan will be drawn in up to 20 tranches, each worth at least 30 million euro. The draw deadline for the loan is four years from the signing of the financing contract. The investment will be implemented by Romania’s road infrastructure company, CNAIR, and is project is expected to be completed in 2025.
In February, CNAIR signed three contracts worth a total 4.68 billion lei with a local tie-up led by Spedition UMB for the construction of the Bacau - Pascani section of A7.
($=0.9318 euro)