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€75 million to finance road rehabilitation

€75 million to finance road rehabilitation

In its largest investment in Moldova to date, the EBRD is providing a €75 million sovereign loan for the rehabilitation of the country's national road network, supporting Moldova's transport infrastructure strategy.

Moldova's road network comprises approximately 16,800 km of road, of which less than 10 per cent is in good condition. This is the result of severe and prolonged neglect of the road network and significant underinvestment.

The EBRD loan, structured in three tranches, will address priority projects that will underpin economic growth and regional integration, as identified in Moldova's road sector investment plan, prepared with the support of the World Bank.

The first €27 million tranche of the EBRD loan will finance the rehabilitation of two sections of the M3 Chisinau - Giurgiulesti road, between the towns of Comrat and Ciumai, with a total length of approximately 55 kilometres. The M3 Chisinau - Giurgiulesti road is an important road in Moldova, providing a link between Trans-European Corridors IV and IX and access to Danube river and the Black Sea.

The remaining tranches, of €25 million and €23 million respectively, will be used to finance additional investments in the roads infrastructure in Moldova.

The project is expected to be co-financed by the European Investment Bank (EIB).

The EBRD investment is complemented by €1.5 million in technical assistance grants to support project implementation and institutional strengthening of the State Road Administration, the implementation agency for the project, as well as to support the advancement of the road maintenance reform.

"Rehabilitation of the deteriorated road network is one of the key priorities in Moldova and the EBRD is pleased to be able to support this objective. The restoration of the roads infrastructure will significantly improve the quality of transport links in the country, facilitating economic growth and regional integration", said Sue Barrett, EBRD Director for Transport.

With the first tranche of this latest loan, the EBRD's investment in Moldova's transport sector has reached €99 million. Overall since the beginning of its operations in Moldova, the EBRD has committed over €400 million in various sectors of the economy, mobilising addition investment in excess of €320 million.

tags: EBRD

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