Two European banks to finance Moldova’s road rehabilitation project

Moldova’s Government will sign on June 28 the Financing Agreement on the Road Sector Programme Draft with the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). The stipulated loans are estimated at 30 mln euros each, to be disbursed in 2 instalments: by 12.5 mln and 17.5 mln respectively. The development goal of the proposed draft is to cut down the transport prices for the road users by improving the situation and quality of Moldova’s road network and its management. The financial agreement is to be signed by Torsten Gersfelt, EIB vice president, Mihail Pop, Moldova’s Minister of Finances, and Alexander Auboeck, Business Group Director for Infrastructure at EBRD. The Government is planning to implement a project on rehabilitating segments of the main road network on a 500 km distance on the main Eastern-Western and Northern-Southern networks, including the links of high interest to the EU. The project will be implemented in 2 stages. 200 km segments of the main road network will be rehabilitated within the first stage, and 300 km segments to be done within the second stage. The total cost of the project on national road rehabilitation tops an estimated 100 mln euros. The necessary funds will be compensated also by the International Development Agency’s loan, estimated at up to 16 mln US dollars.