EBRD Funds Romania Arad Tram Project

The European Bank for Reconstruction and Development (EBRD) will provide a loan of €20.4m to the city of Arad in Romania to build new energy efficient trams.

Located in Romania, Arad is an important trade route between the western side of the country and western Europe. According to the EBRD, the loan will support wider plans to restructure and improve the efficiency of Arad’s public transport, as well as reduce traffic congestion and air pollution.

The loan will be used to buy five new energy efficient trams and renovate Arad’s central transport depot.
In addition, a new e-ticketing system will also be introduced for public transport in the city, with grant financing coming from the EBRD’s Shareholder Special Fund.

The loan will help to promote private sector involvement by outsourcing operations of the regional bus services to the private sector.
EBRD director for municipal and environmental infrastructure Jean-Patrick Marquet said: “This new financing will bring considerable benefits to the residents of Arad and help improve the operational efficiency of Arad Public Transport Company.”
Arad city Mayor Gheorghe Falca said that the loan is important for further development in the city.

“It will enable us to continue our efforts to modernise the public transport system in Arad and bring higher quality services to our residents,” Falca said.

The city of Arad had previously received a €33m loan from EBRD, which was used to pay for renovation of the tram network and modernise the streets along the main north-south axis.