As Prime Minister has previously stated, there has been approved today a loan agreement with Japan to achieve the subway network, Agreement between Romania and the International Cooperation Agency of Japan, amounting to 41.87 billion yen, approximately 300 million EUR.
The loan will be disbursed in tranches over a period of 11 years since the entry into force of the Agreement, on the basis of eligible expenditures incurred under the project.
The Ministry of Finance will make withdrawals from the loan funds, the amounts destination being determined according to legislation on public debt.
The interest rate paid on this loan by Romania is an advantageous one, ie 1.7% per year for amounts corresponding to the principal debt.
The total cost to achieve the underway section linking the capital to Henri Coanda airport is estimated at 5.292 billion lei, and funding sources will be provided, in addition, from the state budget. It is estimated that the project will be completed in late 2019.
The achievement of this project will have social implications, about 880 jobs are expected to be created.
Furthermore, this infrastructure project is extremely important since an estimated 150,000 people will use this section of the subway daily.
The draft law will be sent to Parliament for debate and approval.