CLUJ-NAPOCA -EPISCOPIA BIHOR RRF CO-FINANCING

The project involves the electrification and rehabilitation of the railway line Cluj Napoca-Oradea-Episcopia Bihor to the border with Hungary.

The proposed operation is an investment loan to co-finance the upgrade of an existing 166 km railway line in north-western Romania. The project is located in an EIB Cohesion Priority Region and the railway is on the comprehensive Trans-European Transport Network (TEN-T) that connects Cluj-Napoca, Oradea, Episcopia Bihor to the border with Hungary. The main objective of the project is to electrify and upgrade railway infrastructure, to allow a maximum speed of up to 120 km/h (freight trains) and up to 160 km/h on certain sections for passenger trains, to ensure compliance with Technical Specifications for Interoperability (TSI) including installation of the European Rail Traffic Management System (ERTMS).

The project consists of upgrading an existing railway line located on the TEN-T comprehensive network and in a less developed region in Romania. The railway line connects the city of Cluj-Napoca to the Romanian-Hungarian border. After rehabilitation and modernisation, maximum line speeds will increase to 120-160km/h in addition to improvements to interoperability standards, electrification and safety standards. Transport benefits are expected from improved accessibility, increased capacity and support modal shift to rail. The Project is 100% eligible under Climate Action and Environmental Sustainability. The project has received limited direct and indirect advisory support from JASPERS and PASU (Project Advisory Support Unit). In addition to the technical assistance, the long tenor and more favourable financial conditions of the EIB loan than available on the market have a significant impact on the operation. The EIB loan will partially finance the State contribution to the project alongside RRF funds of around EUR 1.1bn.

The operation consists of rehabilitation and construction of railway transport infrastructure. Where and if applicable, the requirements of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC (to be completed as relevant/applicable) will be verified during appraisal The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation and pollution prevention and control.

The Bank will require the promoter to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.