The loan is the third agreement signed by Arad city hall with the European Bank for Reconstruction and Development. The first, for EUR20 million, was signed in 2005; the second, for EUR13 million – in 2009. The funds were used to upgrade the city’s roads and tram tracks.
The new loan, which has an interest rate of Euribor plus two points, is due in 15 years, with a grace period of three years.
The EBRD will also provide the city with technical assistance worth EUR180,000 to improve the efficiency of public transport services and improve the ticketing system.
The tender for the new trams will be held by the end of the year, and the city will buy two trams every year until 2015, for an estimated EUR1.5 million each.