Moldova secures EIB’s €212m deal for forestry and rail upgrades

The European Investment Bank (EIB) and the Moldovan government signed on Tuesday two key financing agreements totalling €212 million to boost the country’s economic and environmental resilience.

EIB Vice-President Teresa Czerwińska, Moldovan President Maia Sandu, and EU Ambassador to Moldova Jānis Mažeiks announced a €200 million loan to support sustainable forestry initiatives, including the rehabilitation of 63,000 hectares of degraded land and forests.

This initiative aims to expand Moldova’s forest area by 145,000 hectares and address challenges like soil erosion and biodiversity loss.

Additionally, a €12 million EU grant will also go to enhance Moldova’s railway infrastructure. This investment, complementing a €41.2 million loan signed in 2023, will modernise key railway sections to improve connectivity and provide a crucial export route for Ukraine.

“Both agreements – the €12 million grant for country’s railway structure and €200 million loan for Moldova’s forestry sector – will address key challenges currently holding back Moldova’s economic development, such as transportation infrastructure, soil erosion and biodiversity loss. With the €12 million grant offered by the European Union, we continue to modernise Moldova’s railway infrastructure and improve the EU-Ukraine-Moldova transport routes.” said Ambassador Mažeiks.

President Sandu emphasised the alignment of these projects with Moldova’s climate strategy, while Czerwińska highlighted the EIB’s commitment to Moldova’s EU integration and environmental sustainability.

Mažeiks noted that these efforts are part of the broader Solidarity Lanes initiative, which has been vital in supporting Ukraine and Moldova amid regional challenges.