EBRD considers lending EUR 60 mln to Romanian company Transgaz

The European Bank for Reconstruction and Development (EBRD) considers granting a loan of more than EUR 59 million to Romanian state-owned company Transgaz to finance the construction of the BRUA gas pipeline, which will connect the natural gas transmission systems of Romania, Bulgaria, Hungary and Austria.

Transgaz will use these funds for the first stage of the construction project, reports local Profit.ro. This provides the construction of a new gas pipeline on Romania’s territory with a length of about 479 Km, and three new compressing stations at Jupa, Bibesti and Podisor.

The gas pipeline will have an initial capacity of 1.75 billion cubic meters per year, which will then increase to 4.4 billion cubic meters per year in the second stage of the BRUA project.

The project’s total costs are estimated at EUR 593.7 million. EBRD estimates that Transgaz will secure the difference from its own sources, a EUR 179 million grant from the European Commission, and loans from the European Investment Bank (EIB) and from commercial banks.

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