ARF will receive 204 million euros in non-repayable European funds for replacing old locomotives. The European Commission has approved 204 million euros in non-repayable funds from the Modernization Fund to replace old locomotives with new rolling stock, announced the Railway Reform Authority (ARF) on Thursday.
“The Railway Reform Authority (ARF) announces the provision of non-repayable European financing from the Modernization Fund for the investment proposal: Supporting the reduction of energy consumption through energy efficiency in the transport sector, sustainable rolling stock for long-haul services. The decision, confirmed in accordance with the provisions of Article 10d(6) of Directive 96/61/EC, by the European Investment Bank (EIB), provides for financing in the amount of 204 million euros,” the institution said in a statement.
According to the cited source, the investment proposal targets a large-scale project for the period 2024 – 2027. This refers to the replacement of old locomotives with new rolling stock, including nine interregional long-haul trains and 23 electric locomotives.
The main objective of the investment is to improve energy efficiency in rail transport in Romania and is in line with the targets of the National Integrated Energy and Climate Change Plan (PNIESC) for Romania, which envisages measures to modernize urban public transport and railways and can significantly contribute to reducing final energy consumption in transport.
“We emphasize that a major role in the preparation of the documentation for the evaluation of this investment proposal, by the EIB experts, was played by the team of specialists from the Directorate-General for European Transport Programs, within the Ministry of Transport and Infrastructure (MTI), which in record time managed to promote this new acquisition of rolling stock, the beneficiary of which, on behalf of the Romanian state, is ARF (as the implementing agency),” added ARF representatives.
The amount of 204 million euros is added to the 470 million euros attracted by MTI in October 2023 for the financing of the project “Supporting the reduction of energy consumption through energy efficiency in the transport sector – sustainable rolling stock,” which aimed to purchase 62 electric trains, a contract signed at the end of last year with the Polish producer PESA. The project was also financed from the Modernization Fund and will be completed in 2027, contributing to supporting the use of low-carbon emission technologies in rail transport, by improving modal transfer, which will ensure the reduction of greenhouse gas emissions in transport, in accordance with the Commission’s objectives to reduce environmental impact and improve energy efficiency.
“We are talking about approximately 700 million euros in total, 100% EU funding. We only pay VAT and any cost increases from the budget,” said ARF President Ştefan Roşeanu.
The Modernization Fund is one of the key instruments contributing to the objectives of the European Green Deal, by supporting a fair social transition to a green economy.
