Cosmetic surgery for railroad engines

The Japanese Bank for International Co-operation (JBIC) will grant 100 million dollars to a project aimed at upgrading 65 Diesel engines belonging to the National Passenger Railways Company (CFR Calatori), over the next three years. The loan agreement was signed together with the Public Works, Housing and Transports Ministry.

Deutsche Bank AG, which was the agent of the Japanese bank, mediated the loan agreement. The credit is reimbursable over a 7-year period, with a 3-year grace period, Hans Herold, head of Structured Export Finance department within Deutsche Bank, stated.

The company to upgrade the engines will be appointed through an international auction. Among the companies to bid for the works, there may be Electroputere Craiova, which has already been developing engine-upgrading projects.

The project will provide viability increase for the engines, a cut in the exploitation and maintenance costs, fuel consumption decrease, as well as transport safety increase.

“The upgrading of engines and wagon stock used for the public passenger transport service is a priority for us,” Miron Mitrea, Public Works, Housing and Transports minister, said.

“We are also planning to extend the collaboration to other fields this ministry is responsible for,” the Deutsche Bank official specified.

He added that the German bank has also granted a $130m loan aimed at the housing field in Romania and “it is going to sign other loan agreements with the Health Ministry.”

Deutsche Bank has also managed an 85 million-euro loan aimed at Termoelectrica and a 130 million-euro loan for the finalisation of several projects in the electric power field.

“The deal points to strong confidence in Romania’s future,” Yoshitaka Narita, JBIC deputy general manager, maintained. The Japanese bank has loaned several hundred million dollars to Romania so far.

Next week, JBIC will sign with the Public Works, Housing and Transports Ministry another loan agreement worth 220 million dollars, aimed at Bucharest-Constanta railway upgrading.