The European Bank for Reconstruction and Development (EBRD) will be providing a loan of €15m to the city of Iasi, the second largest city in Romania.

The loan amount will be used for the purchase of 50 new buses with low-carbon emissions, which will support the upgrade plans of public transport in lasi.

The new buses are reported to be environment friendly and also comply with the European Commission's Euro 6 legislation on diesel engine emissions,

They are expected to result in a more pleasant and efficient commute as well as cleaner air for the population.

EBRD will also offer a grant of €250,000 that will allow the municipality to establish a transport authority operating on commercial principles to improve the quality of services.

It will also offer assistance to the city for setting up a regulatory body to manage public transport services in the metropolitan area of Iasi.

EBRD Romania and Bulgaria regional director Matteo Patrone said: “The economy and the population of Iasi have grown considerably over the past decade.

“The modernisation of public transport will bolster this growth and contribute to the city’s further development as an important centre for industry, tourism and culture.

“With this project the EBRD will help the city improve the quality of urban transport services in terms of commute time, congestion and pollution, transport facilities, and road safety.”

"The modernisation of public transport will bolster this growth and contribute to the city’s further development as an important centre for industry, tourism and culture."

The loan offered by the EBRD to the city of Iasi is the third project under its new programme called Romania Framework for Sustainable Mobility and Access to Road Transport (SMART), which finances improvements in public transport infrastructure and services in the country.

Agency, Network Rail, Greater Lincolnshire LEP and £28.5m developer contributions.

The Growth and Housing Fund is a national Highways England initiative to support improvements to the strategic road network that will help create thousands of jobs and homes.

Image: People getting on a bus. Photo: courtesy of European Bank for Reconstruction and Development.