Romanian Government

Wednesday, 20 December

1 billion euro for priority transport projects

One billion euro, money obtained from an EIB loan, will be used to cover the state budget’s contribution for co-funding transport priority projects within the Large Infrastructure Operational Programme 2014-2020.

Government approved on today’s meeting a draft law on approving the financing framework agreement between Romania and the EIB in  value of EUR 1 billion. The agreement was signed on July 18, 2017, in Luxembourg by the Public Finance Minister, and will be implemented by the Transport Ministry. In this respect, the two ministries will sign a subsidiary agreement.

Concretely, the amount will be used to finance the state budget deficit and refund the governmental public debt with a view to achieving some investment objectives included in Priority Axes 1 and 2 of the POIM 2014-2020, respectively projects to increase the mobility and develop road, rail and naval transport, and the underground transport means, eliminate deadlocks from the transport infrastructure network, increase access areas with low connectivity, reducing impact of transport on environment.

Loan is granted for an up to 25 –year period, with a grace period of up to 7 years, in very advantageous conditions compared to other financial instruments, and will be made available in 20 installments at the most, until December 31, 2024.

Under public debt legislation, sub-projects allocated by EIB are partially pre-financed from state budget, and later, as part of this  pre-financing, they are recovered from loan.

The draft law will be sent to Parliament to be debated and passed.