Arad, Western Romania, signs EUR 20 million EBRD deal for public transport improvement

The Romanian Western city of Arad's public transport system is to get up to a EUR 20.4 million loan from the European Bank for Reconstruction and Development (EBRD). Like many parts of Romania, Arad's public transport system is municipality owned and is a vital local resource, with the city and its surroundings relying on the network of trams and buses. According to the EBRD, which announced the agreement today ( June 11 ), the loan will support wider plans to restructure and improve the efficiency of the Arad's public transport, as well as reducing traffic congestion and air pollution. The most visible investments to be made with the EBRD money are five new energy efficient trams and an overhaul of Arad's central transport depot, as well as an e-ticketing system. The loan will also help promote private sector involvement in the region's transport. “The EBRD is pleased to continue its successful cooperation with the Arad municipality in order to improve the standards of public transport in the city. This new financing will bring considerable benefits to the residents of Arad and will help improve the operational efficiency of Arad Public Transport Company,” said Jean-Patrick Marquet, EBRD Director for Municipal and Environmental Infrastructure. The investment is not the EBRD's first in Arad's public transport; the municipality previously received a EUR 33 million loan, which helped to pay for earlier renovation of the tram network. Arad's mayor Gheorghe Falca welcomed the latest round of EBRD investment, “The loan agreement signed today is very important for further development in the city of Arad. It will enable us to continue our efforts to modernize the public transport system in Arad and will bring higher quality services to our residents. We are delighted to benefit from the support of such a reliable partner as the EBRD,” he said. Liam Lever, liam@romania-insider.com (photo source: Arad Public Transport Company)