A four-lane highway linking Romania westward to Hungary and the rest of Central Europe and eastward to the Black Sea will be built with the assistance of a US$180mn loan guarantee from US Ex-Im Bank to support US exports. The transaction will help sustain US jobs and promote Romanian trade and tourism.
The Ex-Im guarantee will support a loan by RZB Finance, New York to Romania’s Ministry of Transport, Construction and Tourism. It will finance a motorway project involving the export by Bechtel Overseas of engineering and project management services, and the export of construction and other equipment from US suppliers including Caterpillar; Paccar; Link-Belt Construction Equipment; and Bukkenhave.
“This transaction will support high-quality jobs in both of our countries and help to build a vital trade and transportation artery for Romania,”” says Ex-Im Bank chairman Philip Merrill. “We are eager to do more business with the growing Romanian market.”
The US exports under the Ex-Im transaction will be used to build a 117km segment of the 415km Brasov-Cluj-Bors Motorway that will link the city of Brasov in central Romania with the Hungarian border in the northwest. The motorway will be part of an existing larger network linking Romania to the Black Sea. The 117km segment will take will four years to build. It will take nine years to complete the entire four-lane highway.
The Ex-Im-guaranteed loan will be denominated in euros in accordance with Ex-Im Bank’s Foreign Currency Guarantee Program. The financing will be guaranteed by Romania’s Ministry of Public Finance, carrying the full faith and credit of the Romanian government.