The European Bank for Reconstruction and Development EBRD will give a EUR 13 million loan to Romanian transport company Publitrans S.A. in the city of Pitesti to modernize public transport in the city.

The funds will allow the city to upgrade its fleet by buying 70 new environmentally friendly buses. The loan will also be used to introduce an automated fare collection system by a private company, according to a statement of EBRD.

Under the agreement, the EBRD will also facilitate a twinning partnership through which Publitrans will work with a bus operator from another European Union (EU) member state. The operator will help the company adopt a commercial approach, develop a sound business plan and introduce a performance-based public service contract.

Irina Popescu, irina.popescu@romania-insider.com