Investment Plan: €50 million to finance the construction of a new gas pipeline in Romania
The Juncker Plan has backed a €50 million European Investment Bank (EIB) loan to Transgaz to finance the construction of a new pipeline in Romania. The 478-kilometre pipeline will run between Podişor and Recaș. This agreement was made possible by the support of the European Fund for Strategic Investments (EFSI), the central pillar of the European Commission’s Investment Plan for Europe. The project demonstrates how the Investment Plan supports wider strategic objectives, beyond the promotion of jobs and growth. The project is of critical importance for the promotion of European energy market integration and the security of energy supplies in Romania and the wider region. EuropeanCommissionVice-PresidentValdis Dombrovskis, responsible for Financial Stability, Financial Services and Capital Markets Union, said: “Thanks to support from the Juncker Plan, the European Investment Bank is providing € 50 million to Transgaz to build a new 478-kilometre gas pipeline from Bulgaria to Austria via Romania and Hungary. This important cross-border project will increase competition, which is good for the consumer. It will also bring thousands of jobs to the region, which is the fundamental objective of the Juncker Plan. Combining EFSI financing with funds from the Connecting Europe Facility helped the project get off the ground. I would encourage other project promoters to look into the possibility of combining different sources of financing for their investment projects.” As of October 2017, the Investment Plan is expected to mobilise €240.9 billion across Europe, and just under €1 billion in Romania. Some 21% of these investments are in the energy sector.