Moldova to receive $33m from IDA

Moldova will receive a total of USD 33 million from the International Development Association (IDA) for the Health Services and Social Assistance Agreement and the Road Rehabilitation Agreement. In the last session before the summer recess, Parliament ratified both documents. The first agreement provides financing for the Health Services and Social Assistance Project, which will assist the Government in reducing premature mortality and disability, and in improving the targeting of social transfers and services to the poor. USD 17 million will be earmarked for this purpose. The second agreement is focused on rehabilitation of about 200 lane-km of main roads. Besides support for physical road works, consulting and other services that are directly related to the works, the agreement will also provide institutional support to improve planning, national road network maintenance, and the capacity of managing effectively investment projects related to road rehabilitation and construction. USD 16 million will be granted under IDA credit terms for these purposes. IDA credits are interest-free, repayable in 40 years, and include a grace period of 10 years. The only taxes applied are the service charges of 0.75% per annum and 0.5 percent annual commitment fee on undisbursed credit balances.