Bucharest City Hall plans to contract a loan of up to EUR 350 million from the European Bank for Reconstruction and Development (EBRD) to finance public transport investments, including tram infrastructure upgrades and the purchase of new articulated trolleybuses. The borrowing proposal is scheduled to be put to a vote by the General Council on June 19, according to Buletin de București.

If approved, the financing would be structured in four tranches, with the first amounting to at least EUR 75 million. The loan would have a maturity of 15-20 years and a grace period of up to four years. Interest would be based on the six-month EURIBOR plus a margin estimated at between 1.15% and 1.25%, with the final spread to be determined following project analysis and negotiations.

The financing agreement also provides for fees on undrawn amounts and early repayments.

The largest share of the funds, around EUR 235 million, would be allocated to the rehabilitation of 50 km of tram tracks, the modernisation of the Colentina and Titan depots, and the acquisition of 63 new 36-metre trams. The overall value of this investment programme exceeds RON 7 billion (EUR 1.4 billion), of which around RON 1.7 billion consists of non-reimbursable European funding.

Another EUR 58 million would support the extension of the tram network on Prelungirea Ghencea and the purchase of 16 additional 36-metre trams.

The remaining EUR 57 million would finance the acquisition of 100 new trolleybuses. According to a market consultation launched by the municipality last month, the vehicles are expected to be 18-metre articulated models in category M3, class I, with low floors and full accessibility. Each trolleybus should be capable of carrying at least 130 passengers, including a minimum of 40 seated passengers.

The planned borrowing is intended primarily to provide local co-financing for projects supported by European funds and to continue the renewal of Bucharest's ageing public transport infrastructure.

iulian@romania-insider.com

(Photo source: Facebook/Primaria Municipiului Bucuresti)