LOCATION Moldova, Republic of DESCRIPTION The purpose of the project is to improve and modernise both Moldova's railway network and rolling stock. It consists of a framework with two components: (i) the acquisition of 11 mainline diesel locomotives suitable for both freight and passenger services and the associated maintenance equipment and (ii) the rehabilitation of selected sections of the railway infrastructure. The project is part of a broader programme, which also includes restructuring of the Moldovan railway sector in order to enable it to provide adequate services and to compete with other modes of transport. OBJECTIVES The proposed operation is in line with the objectives of the 2014-2020 External Lending Mandate as it contributes to the development of economic infrastructure, in particular transport. Being partially located on the TEN-T (Trans-European Transport Network) as extended to specific neighbouring countries based on high-level agreements on transport infrastructure, this project will play a role in deepening the integration with the European transport system. By promoting sustainable means of transport the project also contributes to climate change mitigation, a cross-cutting objective of the mandate. COMMENTS This operation is covered by the EU Guarantee for EIB loans outside the EU. ENVIRONMENTAL ASPECTS The locomotives component does not require an environmental impact assessment (EIA). The need for an EIA for the renewal of the associated maintenance depots is being analysed during the appraisal.Concerning the infrastructure rehabilitation component, the project is expected to be mainly within the existing right of way with some short sections on new alignment; therefore the potential negative environmental and social impact is likely to be minor. If situated in the EU, the project would likely fall under Annex II of Directive 2011/92/EU and therefore be subject to screening. The compliance of the procedures in place with the EIB's environmental and social standards will be analysed during the appraisal. PROCUREMENT The promoter is a public entity. The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

ACCOUNTABILITY MECHANISM OF EIB The EIB Complaints Mechanism is designed to facilitate and handle complaints against the EIB by individuals, organizations or corporations affected by EIB activities. When exercising the right to lodge a complaint against the EIB, any member of the public has access to a two-tier procedure, one internal - the Complaints Mechanism Office - and one external - the European Ombudsman. A complaint can be lodged via a written communication addressed to the Secretary General of the EIB, via email to the dedicated email address complaints@eib.org, by completing the online complaint form available at the following address: http://www.eib.org/complaints/form, via fax or delivered directly to the EIB Complaints Mechanism Division, any EIB local representation office or any EIB staff. For further details, check: http://www.eib.org/attachments/strategies/complaints_mechanism_policy_en.pdf When dissatisfied with a complaint to the EIB Complaints Mechanism, citizens can then turn towards the European Ombudsman. A memorandum of Understanding has been signed between the EIB and the European Ombudsman establishes that citizens (even outside of the EU if the Ombudsman finds their complaint justified) can turn towards the Ombudsman on issues related to 'maladministration' by the EIB. Note that before going to the Ombudsman, an attempt must be made to resolve the case by contacting the EIB. In addition, the complaint must be made within two years of the date when the facts on which your complaint is based became known to you. You can write to the Ombudsman in any of the languages of the European Union. Additional details, including filing requirements and complaint forms, are available at: http://www.ombudsman.europa.eu/atyourservice/interactiveguide.faces