EIB lends €10m to Chisinau under road modernization project

Chisinau Mayor Dorin Chirtoaca and Wilhelm Molterer, Vice-President of the European Investment Bank, signed on Friday a loan agreement for 10 million euros under a project to modernize streets in the center of the city, Info-Prim Neo reports. Wilhelm Molterer stated that the EIB is offering financial support for the development of Chisinau Municipality, by extending loans for the purchase of new trolleybuses, and now for road rehabilitation. Molterer expressed his hope that the projects will offer immediate support to the residents of the city. “What we really appreciate is the very clear priorities of the Chisinau City Hall concerning investment. These priorities include investment in the public transit system and in roads. The project that we are signing today is going to benefit all the residents of the city”, stated Molterer. Mayor Dorin Chirtoaca expressed his hope that the municipality will further benefit from the support of European financial organizations to implement other projects, such as the thermal insulation of apartment buildings. The road modernization project envisages the rehabilitation of six main streets in the central part of the city, including Stefan cel Mare Blvd, Constantin Negruzzi St, Vasile Alecsandri St, 31 August 1989 St, Tighina St, and Alexandru cel Bun St. Besides revamping the road surface and the sidewalks, the project will also renovate piping, wiring and street lights. The loan is offered for a term of 10 years with a grace period of 2 years and at an interest of 5% per annum. The total value of the project is 22 million euros, with the rest being offered earlier by the European Bank for Reconstruction and Development (EBRD). The agreement between the City Hall and the EBRD was signed in December 2011, and the City Council approved it earlier this year. The street modernization project is now in its designing phase and is expected to be completed in 2013. Since 2007 the EIB has offered loans to Moldova to the total amount of 282 million euros. Moldova is the biggest beneficiary of capital among the Eastern Partnership countries.