EAST-WEST RAILWAY TRAFFIC: THE ROLE OF THE EBRD

The success of the rail sector in responding to market and institutional changes will be critical to Eastern Europe's long-term economic prospects. Therefore, the European Bank for Reconstruction and Development (EBRD) is providing extensive support to help the East European rail industries to adapt to the market economy and to new traffic opportunities and operations. It has now delivered 18 Board-approved railway projects in 16 countries, and lent Euro700M to this sector. EBRD aims to support the industries' transition to financial viability and ability to compete successfully in internal and east-west traffic markets. To meet this goal, it uses project finance to support high-transition railway improvement projects under suitable conditions. It is willing to consider funding a wide range of investments in railways, including network operations and rail transport operations. It tends to support investment projects that renew or repair existing assets or improve asset management. Its investments in rail track and terminals will enhance transport services on several strategically important east-west routes. Private participation in east-west rail transport is encouraged. The EBRD has nine criteria for maintaining the high quality of its rail investments, and emphasises growth of east-west trade.