Romania’s capital Bucharest is set to receive a loan tranche of almost €266 million from the European Investment Bank (EIB) to modernise its urban tram network, marking a major step toward improving sustainable public transport in the city. The financing will support the renovation of around 50 kilometres of tram tracks, the introduction of new tram vehicles, and the upgrade of depots to enhance overall system performance.
The project is designed to significantly improve speed, reliability, comfort, and accessibility for passengers in a network that serves approximately 500,000 people daily. By encouraging a shift from private cars to public transport, it is also expected to reduce traffic congestion and improve air quality in Bucharest. The works are planned for completion by 2030.
EIB Vice-President Ioannis Tsakiris highlighted the importance of the investment, noting that it supports Bucharest’s transition toward a greener and more modern urban transport system with long-term benefits for both residents and the environment. Bucharest Mayor Ciprian Ciucu also underlined the urgency of upgrading an ageing tram system, stressing that the current infrastructure is over 50 years old and no longer efficient.
This financing tranche is part of a broader €300 million EIB loan supporting Bucharest’s infrastructure development, which also includes energy system upgrades. Earlier funding under the programme supported the replacement of 106 kilometres of district heating pipelines to improve efficiency, reduce losses, and cut greenhouse gas emissions. Together, these investments contribute to a wider €1.3 billion urban development programme aimed at modernising mobility and reducing the city’s carbon footprint.
The initiative aligns with key European priorities, including climate action under the Paris Agreement and the EU’s REPowerEU plan to reduce dependence on fossil fuels. It also builds on a long-standing partnership between the EIB and the Municipality of Bucharest, which has supported city development projects since 2002 across transport, education, water infrastructure, and energy efficiency.
In addition to financial support, the EIB has provided advisory assistance to help prepare and implement transport and heating projects, enabling faster execution and more efficient use of public resources. The bank reaffirmed its commitment to continuing support for Bucharest’s future infrastructure and sustainability investments.
