Bucharest is set to receive a loan tranche of almost 266 million euros from the European Investment Bank (EIB) to upgrade the urban tram network.

The city will use the financing to renovate around 50 kilometres of tram tracks. It will also introduce new tram vehicles and upgrade depots to increase speed, reliability, comfort and accessibility on a network that serves around 500,000 people a day. The tram works are scheduled for completion by 2030.

“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 300 million euros EIB loan for Bucharest infrastructure development that also includes energy-system upgrades. An initial 34 million euros tranche covered the project’s energy component, which involves replacing 106 km of district heating pipelines to enhance efficiency, reduce heat and water losses, and lower greenhouse gas emissions.

The EIB financing supports a broader 1.3 billion euros investment programme aimed at improving urban mobility and reducing the carbon footprint of energy supply in Bucharest, a metropolitan area home to more than 2 million people.

“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, who also attended the signing ceremony.