JBIC SIGNS ODA LOAN AGREEMENT WITH ROMANIA --To Help Rehabilitate Pan-European Corridor IV Railway Line--
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed a loan agreement today totaling 25,635 million yen with Romania at Bucharest, Romania, to support the Railway Rehabilitation Project of the Bucharest-Constanta Line. With this loan, the cumulative ODA loan commitments of JBIC to Romania numbered three, totaling 47,624 million yen.
2. The proceeds of the loan will be used for civil engineering, procurement of equipment, and related consulting services to upgrade the standards for sections of the existing railway on the Bucharest-Constanta line, covering 86 km of the entire 225 km line. The loan will also support the upgrading of related facilities such as signals, communications and electronic equipment, and railroad station facilities. The Bucharest-Constanta line is part of Pan-European Corridor IV railway line connecting Germany and Turkey.
3. The EU's policy to expand eastward since the mid 1990s has placed priority on improving the main railways and roads in Central and Eastern Europe, known as the European Corridors, and on unifying standards of the Corridors with those of Western European countries. In 1994, as part of these efforts, the Pan-European Conference on Transport decided on the development of the Pan-European Transport Corridors in view of expanded international traffic generated in the Eastern European region. Romania undertook the responsibility of developing the section of the Pan-European Corridor IV (Berlin-Istanbul) that passed through the country, which is the scope of this loan. Against this backdrop, the Romanian government divested itself of the former Romania national railway and pushed forward drastic reforms in the organization and legal framework of the railroad sector. The country now faces the urgent task of improving and rehabilitating the aging railroad infrastructure.
4. As part of the modernization of railway equipment, the purpose of this project is to upgrade the existing railway and related facilities between Bucharest and Constanta on Pan-European Corridor IV, to meet EU standards. This project also aims to secure stability and safety, raise transport capacity mainly for cargo, and improve transport efficiency. The rehabilitation of the Pan-European Corridor IV that passes through Romania is expected to promote distribution of goods in the region, and at the same time contribute to the growth of Romania and neighboring countries.