Timișoara seeks EUR 30 mln EBRD loan for infrastructure

Timișoara City Hall plans to sign a new EUR 30 mln repayable financing agreement with the European Bank for Reconstruction and Development (EBRD) to modernize the city’s infrastructure and build two new bridges, according to a statement from the municipality.

The EBRD financing, together with more than EUR 100 mln in EU funding, will support four public investment components.

The first, worth EUR 11 mln, involves the construction of a road bridge and a pedestrian bridge, as well as a boulevard connecting Baader Street with the JH Pestalozzi-Corneliu Coposu intersection. The project will complete Timișoara’s second traffic ring in the eastern part of the city and provide an alternative north-south route bypassing the city center. The municipality has also secured RON 77.9 mln in funding for the project through the Regional Program West 2021–2027.

Another EUR 11 mln will be used to modernize almost 3 km of Calea Șagului-Magistrala Verde, including public lighting, public spaces, pavements, cycle paths and lanes prioritizing public transport. The municipality has secured RON 97.3 mln in EU funding for the project through the same regional program.

The remaining EUR 8 mln will cover ineligible costs related to two projects already underway: the urban regeneration of the Traian Square area and the rehabilitation of 27 km of the main district heating network.

The Traian Square project is modernizing infrastructure and public spaces in the Fabric neighborhood and has also received RON 63.4 mln through the Regional Program West 2021–2027. The district heating project, aimed at reducing network losses and improving the security of heat and hot-water supply, has received RON 248.8 mln from the Modernization Fund through the Energy Ministry.

The new agreement would complement two repayable financing agreements previously signed by the Timișoara municipality with the EBRD for major urban investments, bringing the city’s current EBRD-backed investment program to a broader infrastructure and urban-renewal package.

At the beginning of 2026, Timișoara’s debt stood at 5.5% of annual revenues, according to the municipality.