The state-owned Moldovan Railways (CFM) has concluded a contract with GE Transportation, which is the transport engineering division of the General Electric company (United States), for purchase of 12 locomotives for EUR 45 million, the CFTS reports, citing the Interfax Ukraine news agency.

CFM’s head Iurii Topala said after the signing of the contract that the locomotives should arrive in Moldova within 1.5 years. They could be used for both passenger and freight transportation.

According to Topala, this will be the first purchase of locomotives since the country attained independence. The locomotives that are currently on the books of CFM are about 40 years old.

The locomotives are being purchased under a project for restructuring and reorganization of the Moldovan railway sector. The project will cost about EUR 110 million, including EUR 6.75 million in grants from European donors and the remainder in loans from the EBRD and the EIB.

In addition to purchase of locomotives, the funds are intended for financing repair of 250 kilometers of railroad tracks, among other things.

As reported earlier, GE Transportation and Progress Rail (a subsidiary of Caterpillar) bid to supply locomotives to Moldova.