The European Investment Bank ( EIB ) has signed a €500 million ( US$579.25 million ) loan with the Romanian government for a key road section through the Carpathian Mountains, forming part of the planned A1 motorway from Bucharest to the western border.

The EIB credit will co-finance the construction of 122 kilometres of highway between the cities of Pitești and Sibiu – a stretch that is part of the priority Trans-European Transport Network.

The A1 motorway, a flagship development project for Romania, is estimated to cost around €5.5 billion. The EIB plans to provide up to €1 billion alongside European Union and Romanian government funds.

“This is an investment in people, safety, and opportunity,” says EIB vice-president Ioannis Tsakiris. “By making travel faster, safer and more affordable for both people and goods, we are helping strengthen regional competitiveness and connect communities across Europe. This project is a powerful example of how European cohesion translates into lasting prosperity, inclusiveness and shared growth.”

The EIB recently signed its initial loan in Bucharest along with the Romanian Ministry of Finance. This is the third Romanian motorway project with EIB financing during 2023-2025, after the A3 and A7 motorways for which the bank provided €1.4 billion in loans.

Finance minister Alexandru Nazare comments: “Our work with the European Investment Bank shows our shared commitment to Romania’s long-term growth – not just through infrastructure, but by supporting innovation, attracting new investments, and creating opportunities in key areas of our economy. By managing public finances responsibly and making the most of EU funding, we’re helping businesses grow, boosting regional development, and laying the groundwork for a more prosperous future.”

The A1 motorway will ease congestion on the existing DN7 national road, which is a conventional single-lane route burdened by heavy traffic and a high number of heavy goods vehicles. Once completed, the A1 will facilitate faster and more reliable transit across the country and contribute to Romania’s broader goal of becoming a key logistics hub in Eastern Europe.