THE Moldovan government has approved a restructuring plan for Moldovan Railways (CFM), which will split the company into two independent entities.
Under the plan, freight and passenger operations will be sold to a private investor, while infrastructure management will remain under state control. Restructuring is scheduled to be completed by the end of 2026, says Vladimir Bolea, Moldova’s minister of infrastructure.
CFM has debts of Lei 1.13bn ($US 66.4m) and while passenger and freight operations continue to generate revenue of around Lei 22m per month, the company lacks the financial resources required to modernise infrastructure that has deteriorated significantly. It is also reportedly struggling to cover its annual wage bill of Lei 40m and has not paid for diesel fuel, electricity, heating and natural gas. A recent audit uncovered unpaid bills dating back decades.
CFM has put more than 100 assets up for sale in an effort to raise money to clear wage arrears. These assets include locomotives, coaches, wagons, containers and refrigerated wagons that are no longer operational.
According to the Finance Ministry, the future private owner will need to invest around €400m in rolling stock to ensure that the new company is able to operate on a sustainable basis. However, the privatisation plan has drawn criticism from some politicians.
“What has happened to Moldovan Railways can only be described as deliberate destruction,” says Vasile Tarlev, former prime minister and leader of the Future of Moldova party. “Severe damage has been done to the infrastructure, rolling stock and staff over the past four years, when companies went bankrupt, locomotives and wagons were sold, employees were laid off, and wage arrears exceeded six months.”
