FOR PROJECTS OF METROREX AND ELECTROCENTRALE PAROŞENI, The EIB will lend 500 billion Euros to Romania

On Friday, the Romanian authorities signed loan agreements with the European Investment Bank (BEI). The loan is taken on at an interest rate of less than 4%, for the co-financing of the Universitate-Pantelimon subway segment and for environmental investments in Electrocentrale Paroşeni.

The largest part of the amount - 465 million Euros - is intended to finance the aforementioned subway segment. The loan agreement has a 25-year maturity and a grace period of six years.

There are currently ongoing works on the Drumul Taberei-Opera House segment. The Universitate-Pantelimon segment has a length of approximately 8 kilometers and an estimated number of 12 stations, and the preliminary works will begin in the first half of 2012.

The remaining 32.65 million Euros - which represent a separate loan - will be used by "Electrocentrale" Paroşeni, to complete several environmental investment projects. The projects concern the replacement of the current collection, shipping and storage of the cinders and ash, as well as the construction of an installation for the desulphurization of the exhaust gas". The loan has a 15-year maturity with a grace period of four years.

According to the representatives of the Ministry of the Economy, Trade and Business Environment (MECMA), the project will have an important positive macroeconomic impact, by ensuring the continuity of the functioning of the plant and, respectively, the needed electricity and thermal energy for 200,000 inhabitants of the Valea Jiului area. The project will also help preserve the jobs in the energy production units in the area, and about 300 temporary jobs would be generated during the implementation of the project. The project is expected to be completed by the end of 2015.