Poland to lend $15m to Moldova for water services projects

Poland will grant a loan estimated at about USD 15 million to Moldova to finance investment projects for improving sewers and water services in some localities of Moldova. The project plans to reconstruct the water mains for the towns of Sangera and Telenesti; modernise the wastewater treatment plant for the water network Soroca-Balti; build a small-capacity hydroelectric dam on the Raut River nearby the village of Trebujeni, Orhei district, etc. The loan will cover 90% of the expenses for the equipment and material needed for carrying out the projects. The remainder will be covered by the local authorities. The loan agreement also stipulates that the share of goods and services of Polish origin shall represent at least 75% of the total shipments financed under the agreement. The loan is repayable in 20 years in 36 stages, and includes a grace period of two years. The interest rate is fixed at 1.4 percent, and the late payment penalty is 1.25 percent.