EU and EIB Commit €212M to Moldova’s Green Transition and Infrastructure Upgrades

The €200 million EIB loan is designated for sustainable forestry initiatives in Moldova.

At the Moldova Partnership Platform conference in Chișinău today, the European Investment Bank (EIB Global) and the government of Moldova signed two major agreements to boost the country's economic and environmental resilience. The agreements, announced by EIB Vice-President Teresa Czerwińska, Moldovan President Maia Sandu, and EU Ambassador to Moldova Jānis Mažeiks, include a €200 million loan for forest development and a €12 million EU grant for railway infrastructure improvements.

The €200 million EIB loan is designated for sustainable forestry initiatives in Moldova. This funding will enhance forest governance, reinforce regulatory frameworks, and support the National Forest Extension and Rehabilitation Programme, which aims to expand Moldova’s forest area by 145,000 hectares. Specifically, the loan will help rehabilitate 63,000 hectares of degraded land and forests, addressing soil erosion and biodiversity loss. Additionally, the EIB is providing a €500,000 technical assistance grant through the EU for the Ukraine Advisory Programme.

The second agreement includes a €12 million EU grant, which complements a €41.2 million loan agreement signed in 2023. This grant will fund the rehabilitation and modernization of crucial sections of Moldova’s railway infrastructure. The improvements are intended to boost internal connectivity and provide a critical export route for Ukraine, aligning with the Solidarity Lanes initiative aimed at enhancing regional stability and economic resilience.

Moldovan President Maia Sandu expressed her appreciation, stating: “Our development strategy is closely linked to addressing climate change. The afforestation project to add 145,000 hectares of forest is especially important to me. We are grateful for the European Investment Bank’s support in this endeavor.”

EIB Vice-President Teresa Czerwińska highlighted the bank’s commitment: “As the EU climate bank, the EIB is dedicated to Moldova’s sustainable development and EU integration. Today's agreements demonstrate our commitment to enhancing Moldova’s environmental resilience and infrastructure, addressing key challenges in forestry and connectivity.”

EU Ambassador Jānis Mažeiks emphasized the impact of the funding: “The €12 million grant and €200 million loan will tackle critical barriers to Moldova’s economic development, including transportation infrastructure, soil erosion, and biodiversity loss. The Solidarity Lanes initiative has been vital in supporting Ukraine and Moldova amidst the ongoing conflict, helping Ukraine export over 136 million tonnes of goods and import more than 52 million tonnes of essential merchandise.”

These investments are poised to significantly advance Moldova’s green transition and infrastructure modernization, reinforcing its role as a key EU partner.