The EBRD will unlock the loan for the modernization of the streetcar lines in Iaşi

The European Bank for Reconstruction and Development has notified the Ia i Public Transport Company (RATP) Iaşi and the Mayoralty of the City of Ia i that it may unlock the last installment of the loan granted for the modernization of streetcar infrastructure of the city of Iaşi.

The total loan amounts to EUR 15 million and is intended to fund a comprehensive project for the rehabilitation of the electrical transportation infrastructure of the city of Ia i. The release of the EUR 5 million final installment of the loan is still uncertain, because one of the conditions of the EBRD, namely the conversion of the public transportation company into a private company. The money of the last installment will be used to pay for the works executed so far by German constructor "Martin Rose", as well as to fund a component of the project that was recently launched - the modernization of the street car lines on Cuza Vodă street, in the center of Iaşi.

As RATP was not converted into a company, the EBRD has frozen the last installment of the loan, which seriously strained the relationship between the mayoralty of Ia i and the entrepreneur, who went as far as to threaten halting the works. After lengthy negotiations between the Mayoralty of Iaşi and RATP on one hand, and the EBRD on the other hand, a compromise has been reached. The EBRD bank will unlock EUR 3 million, in order to fund the works in the Cuza Vodă area, with the remaining EUR 2 million to be paid once the Public Transport Company of Ia i signs a new service contract with the Mayoralty of Iaşi.

Maricel Ghercă, the manager of RATP Iaşi, explained: "The 3 million Euros would allow us to complete the works on Cuza Vodă, with the remaining amount to be received once we sign the new contract with the mayoralty. We now have a new contract for vehicle and route management, but the EBRD insists that the contract be called ".

In this context, the relationship between RATP Iaşi and the mayoralty could undergo major changes. The signing of a public service contract between RATP and the mayoralty entails that the mayoralty will provide financial support should the public transportation company become bankrupt. RATP Ia i has over 110 million lei in debt, of which 80 million in debt to the public budget, and the remaining 30 million in overdue payments to the mayoralty of Ia i. In turn, the mayoralty has EUR 7.9 million to pay to the RATP.