OREANDA-NEWS. August 13, 2010. The EBRD is supporting the modernisation of Chisinau’s transport system with a EUR5 million loan to Regia Transport Electric (“RTE”) to co-finance the purchase of up to 90 new trolleybuses, as part of the first municipal transport project in the country focusing on the improvement of the municipal transport infrastructure, reported the press-centre of EBRD.

The funding from the EBRD is provided in support of the comprehensive reform programme initiated by the Chisinau Municipal Council.

The proceeds of the EBRD loan will be used to purchase up to 90 low-floor trolleybuses, spare parts and maintenance equipment by RTE.  The total project cost is estimated at EUR 13.7 million, and will include EUR 13 million investments and EUR 0.7 million pre- and post-signing technical assistance to RTE and the City.

The EBRD will also support the restructuring of municipal services in Chisinau, providing RTE with access to external financing and introducing a contractual relationship between the City of Chisinau and RTE through a Public Service Contract. The Public Service Contract will focus on reliability and provision of quality of service.

The project will be co-financed by a EUR 5 million loan from the European Investment Bank and a EUR 3 million grant from the EU’s Neighbourhood Investment Facility (NIF). The EBRD is providing an additional EUR 0.7 million in technical assistance grants to assist the City to design and procure a sector-wide electronic ticketing system, develop a long term strategy for the public transport sector and improve the regulatory framework to integrate various modes of public transport operators. These technical assistance grants will be provided by international donors.

“By financing the upgrade of municipal transport infrastructure and helping the city of Chisinau to reform the sector, the EBRD will enable RTE to provide improved transport services to the citizens of Chisinau, increasing the quality of passenger transportation and improving environmental efficiency”, said Jean-Patrick Marquet, EBRD Director for Municipal and Environmental Infrastructure.

To date the EBRD has invested over EUR 400 million in Moldova across various sectors of the country’s economy, attracting additional investment of approximately EUR 330 million.