Government allocates 421 million lei for railway development in Moldova
The Government will allocate over 421 million lei, which is approximately 21.2 million euros, to increase the share capital of the State Enterprise "Calea Ferată din Moldova" (CFM). A portion of these funds will be used to expedite the rehabilitation of the Tighina–Basarabeasca–Etulia–Giurgiulesti railway section.
The Executive's decision is based on the commitments made by the Republic of Moldova regarding financing projects supported by the European Bank for Reconstruction and Development and the European Investment Bank.
The financial resources will not be allocated to fund the enterprise's current economic activities; instead, they will be used exclusively to develop the CFM infrastructure.
During a government meeting on August 5, Deputy Prime Minister and Minister of Infrastructure and Regional Development, Vladimir Bolea, stated, "We are making significant investments in railway infrastructure, and the role of the Republic of Moldova in the Black Sea Basin region is increasing every day."
Prime Minister Vasile Tofan emphasized that improving railway infrastructure is both a matter of regional security and an economic opportunity for the country. He pointed out, “Ukraine needs to export about 6 million tons of grain. Obviously, not all of it will pass through our network. Even if we earn $10 per ton just for transit, that amounts to $60 million. This is a tremendous opportunity. Even if we only capitalize on a portion of it, it will still provide a significant influx of funds for the enterprise.”
He encouraged ministers to adopt a more pragmatic approach when such opportunities arise. “Use diplomatic channels to generate revenue for our critical infrastructure,” the Prime Minister urged.
According to officials, between February 2022 and September 2023, CFM generated approximately one billion lei in revenue from shipments related to grain exports from Ukraine.
