EIB lends Moldova another €150M

The European Investment Bank is offering Moldova two more loans totaling €150 million: one for road rehabilitation and the other for the wine-making sector, Info-Prom Neo reports. Prime Minister Vlad Filat, who signed the loan agreements on behalf of Moldova, said the €75 million offered by the EIB under the first project will be used to repair portions of important roads, including Chisinau-Soroca and Chisinau-Ungheni-Sculeni, on a total length of 93.6 kilometers. The project is to be completed in 2016. This project is co-financed by the EBRD, which recently agreed to provide €75 million. In addition, negotiations are under way with the European Commission for a grant of €30 million for the same purpose. The EIB has earlier offered €30 million for the rehabilitation of a portion of Chisinau-Hincesti road and in 2011 work on this road will continue as well as on Chisinau-Sarateni road. The second loan agreement signed today, also of €75million, is in support to the wine-making sector. The loan was negotiated in a difficult period for Moldova when our country was facing a ban on wine exports to Russia, said Vlad Filat. According to the prime minister, the money will be used to purchase equipment for wine-testing laboratories, to open research and training centers for the professionals in this sector, and to purchase and subsequently let equipment to the vine-growing farmers. “We are very glad to support the modernization of Moldova's economy and its European aspiration”, said Constantin Sinodyno, the official who signed the loan agreements on behalf of the EIB. He added that 2010 has been a beneficial year for the relationship between the EIB and Moldova. The loan for road rehabilitation is offered for a period of 18 years, with a grace period of 5 years and at an interest rate of 3%; the second loan is offered for a period of 12 years, with a grace period of 4 years and at an interest rate of 3%.