Bucharest is set to receive a EUR 266 million loan tranche from the European Investment Bank (EIB) to modernize its tram network, as part of a broader effort to improve urban mobility and reduce emissions. The financing will allow the city to renovate around 50 km of tracks, introduce new vehicles, and upgrade depots, the bank announced. The tram network serves approximately 500,000 passengers daily.
The modernization works are expected to be completed by 2030. The agreement was marked by a signing ceremony attended by EIB Vice-President Ioannis Tsakiris and Bucharest mayor Ciprian Ciucu. “This investment marks an important step in Bucharest's transformation into a greener, more future-ready city.
We are proud to support projects that deliver lasting impact for both people and the environment,” said Vice-President Ioannis Tsakiris. The tranche is part of a EUR 300 million EIB loan for infrastructure development, which also includes energy upgrades. An earlier EUR 34 million installment supported the replacement of 106 kilometers of district heating pipelines to improve efficiency and reduce losses.
Overall, the project forms part of a EUR 1.3 billion investment program designed to enhance urban mobility and lower the carbon footprint of energy supply in a metropolitan area of over 2 million residents. “Bucharest needs big investments in the tram network, it is over 50 years old and it is no longer efficient. This financing is extremely important for the city.
We are committed to continuing this collaboration and to accelerating the development of projects that will shape the future of our city for generations to come,” said Bucharest mayor Ciprian Ciucu. The initiative also aligns with broader European goals, including the European Union’s climate commitments under the Paris Agreement and the REPowerEU plan to reduce reliance on fossil fuels. irina.marica@romania-insider.com (Photo source: Eib.org)