Government borrows money from Export-Import Bank of China to repair roads

Two road sections – Chisinau – Hincesti – Basarabeasca (39 km) and Chisinau – Dubasari (9 km) – will be rehabilitated with a loan that will be taken out from the Export-Import Bank of China. In the February 8 meeting, the Government decided to initiate talks on the lending agreement and set up a group of negotiators that will be headed by Minister of Finance Veaceslav Negruta, Info-Prim Neo reports. The cost of the project is 426.6 million Chinese Yuan (US$62.4 million). The planned works include the reconstruction of the basic gravel layer, extension of the roads, asphalting of the upper layer, construction of a bridge and rehabilitation of 28 bridges, construction and repair of 116 drainage channels, and other works. Both of the road sections have by two lanes for two directions. The projects will be implemented during two years and a half under the management of the Ministry of Transport and Road Infrastructure. The loan is repayable in 20 years, with a grace period of five years. The interest rate is 2%. A condition for granting the loan is to make at least 50% of the total purchases within the project from the People’s Republic of China. The Chinese company Sinohydro Corporation Limited will be the contractor and exporter of the project.