Moldova allocates €15.3m to unbundle and upgrade railways
The Moldovan Government approved the allocation of €15.3 million (approx. 300 million MDL) from the state budget on June 3 to modernize railway infrastructure and boost passenger transport services. This funding enables the executive branch to sign multi-year agreements for both track administration and public transport operations immediately.
The infrastructure investment
This strategic financial injection will allow the state to co-finance essential maintenance, track rehabilitation, and network development.
"Through these contracts, the Government will be able to co-finance the maintenance, repair, and development works of the railway infrastructure, as well as support the expansion of passenger rail transport services, depending on the needs of citizens," stated Vladimir Bolea, Minister of Infrastructure and Regional Development.
European alignment and unbundling
The initiative is part of Moldova’s broader legal alignment with European Union standards as the country advances its EU accession pathway. The reform introduces a European-style unbundling model, creating distinct legal and economic entities for network management and commercial transport operations.
Authorities expect this structural separation to open the network to private operators and streamline foreign subsidies. The restructuring accelerated following the establishment of the state-owned joint-stock company CFM Pasageri si Marfa on February 4 under the Public Property Agency (APP).
According to APP Director Roman Cojuhari, public assets including tracks, stations, and land will remain under the management of the legacy state enterprise, Calea Ferată din Moldova. Meanwhile, the newly formed commercial entity will oversee trains, cargo operations, and passenger services to access new external funding. This overhaul follows Moldova's 2024 integration into the updated Trans-European Transport Network (TEN-T), which unlocked new international investment channels.
Translation by Iurie Tataru
