Mariana Durlesteanu to sign agreement on additional financing for MSIF II Project

The Government empowered Minister of Finance Mariana Durlesteanu to sign the agreement on the additional financing credit in the amount of $5 million for the Moldova Social Investment Fund II Project (MSIF). The agreement will be signed with the World Bank’s International Development Association, Info-Prim Neo reports. The project implementation period was extended until 2012. The additional financing includes the $0.65 million contribution of the beneficiary communities and the Government’s contribution of $0.2 million The US$5 million will be directed towards supporting poor communities that have not previously benefited from the MSIF Project, with a preference for villages damaged by floods in the summer of 2008. Towns on the Prut and Nistru rivers will be selected based on a “first come, first served” principle and on their proposals. The additional financing will also be used to implement 45 social, infrastructure and environment projects, help provide better social care and economic services and strengthen the capacities of the local institutions. The Moldova Social Investment Fund II project was launched in August 2004. Its cost is $29.17 million, including a $20 million credit from the World Bank, $3.5 million in financial assistance from the Swedish International Development Cooperation Agency, the beneficiaries’ direct contribution of $3.6 million and the Government’s contribution of $1.4 million The World Bank credit is repayable in 40 years, with a grace period of 10 years and an interest rate of 0.75% a year.