8 June 2012: The European Bank for Reconstruction and Development (EBRD) has announced funding for energy efficient public transport systems in Romania. EBRD is providing a loan of up to €20.4 million to Arad, Romania, to finance the acquisition of energy efficient trams.

The loan will be used to acquire up to five modern energy-efficient trams and to modernize the main depot infrastructure. Under the overall project, an e-ticketing system for public transport in Arad will be set-up, with the support of grant financing from the EBRD’s Shareholder Special Fund. Private sector participation will also be promoted by outsourcing the operations of the regional bus services to the private sector.

The financing will support the city’s wider objective of restructuring public transportation including improving efficiency by reducing traffic congestion and air pollution in Arad. [EBRD Press Release]