The EBRD will allocate 150 million euros to co-finance the Project V for the modernization of roads in Moldova with a total value of 300 million euros.
In particular, this is stipulated by a relevant loan agreement between Moldova and the European Bank for Reconstruction and Development, the signing of which was approved by the Moldovan government at a meeting on Wednesday to implement the Project. The Cabinet granted the authority to sign the document to Infrastructure and Regional Development Minister Andrei Spinu. The loan agreement between Moldova and the European Bank for Reconstruction and Development for the implementation of the Project V for the rehabilitation of roads in Moldova was prepared by the EBRD, at the government's request, to ensure the implementation of national projects for the rehabilitation and modernization of roads. The agreement provides for an EBRD loan of 150 million euros to Moldova, representing a 50 percent co-financing of the Project, the other part of which has already been borrowed from the European Investment Bank. The EBRD loan will be provided in two tranches of 90 million euros and 60 million euros, respectively. The borrower will repay the first tranche in 28 equal semi-annual installments (or as equal as possible) on January 25 and July 25 of each year, and the last date of repayment will be July 25, 2041. The second tranche will also be repaid in 28 equal semi-annual installments on May 25 and November 25 of each year, and the last date of repayment of this loan is November 25, 2042. The commitment fee is 0.5% per annum. The interest rate on the loan will be variable. The loan agreement will be officially signed in Chisinau, tentatively in December. Under the loan agreement with the EBRD, it is envisaged to start rehabilitation, modernization and widening of the following road segments: M2, Chisinau ring road, sector 2 (widening to 4 lanes), estimated length of 7 km; M1 road, border with Romania - Leuseni - Chisinau - Dubasari - border with Ukraine (rehabilitation), estimated length of 85 km. The resources provided by the EBRD are intended to finance the rehabilitation of national roads, provide consultancy services for Project implementation and technical supervision of road rehabilitation and modernization works, including modernization of the road asset management system. Implementation of the Project will improve the condition and quality of the road network and reduce road transportation costs for road users in Moldova. // 06.12.2023 - InfoMarket
