Only one third of money earmarked for repair used

The State Road Administration that is managed by the Ministry of Transport and Road Infrastructure used only 33% of the foreign loans granted for implementing the project to support the road sector program, Natalia Trofim, division head at the Audit Office, said when presenting the audit report for 2007-2010, Info-Prim Neo reports. Natalia Trofim said the US$48.7m project is financed by such donors as the World Bank’s International Development Association, the European Bank for Reconstruction and Development, the European Investment Bank, and the European Commission. “As the State Road Administration postponed designating the winners of the tender contest to acquire works to rehabilitate the roads, the World Bank cancelled a tranche of US$20.2 million. The EBRD released no part of its loan. The €12m grant provided by the European Commission hasn’t been used. Thus, only 14 km of the planned 57 km of road have been repaired,” said Natalia Trofim. Audit Office chairman Serafim Urecheanu said the position of the State Road Administration is strange. “Moldova does not have money, while the State Road Administration does not make sure that the money offered by foreign donors as grants or loans at low interest rates is put to good use. This seriously affects Moldova’s image,” he stated. Deputy Minister of Transport and Road Infrastructure Boris Gherasim said it is easier to take a political decision to negotiate and sign a lending agreement with foreign donors than to go through all the formalities until the loan becomes effective. “We already devised projects for about 700 km of road and can apply for financing for them. Taking into consideration all the negotiated contracts, this year we can use about €250 million. There will be held tender contests. The projected amount for next year is €350 million,” said the deputy minister. According to Boris Gherasim, all the national roads in Moldova will be rehabilitated and modernized over ten years. The resources allocated for the purpose will be fueled from internal sources (the Road Fund) and from foreign loans.