The World Bank will provide Moldova with a loan of 44.1 million euros for projects to develop water supply and sewerage systems.
This is provided for by an appropriate financing agreement between Moldova and the International Development Association from the World Bank Group for the implementation of the project “Water Supply and Sanitation Security in Moldova”. The document was signed in Washington on April 21, and now the Moldovan government has approved its ratification. It is planned that for the implementation of the project, the World Bank will allocate a loan of 44.1 million euros to Moldova through the International Development Association, and the Austrian government will allocate a grant of 1.55 million euros through the Austrian Development Agency. The balance of the WB loan is repayable in accordance with the established scheme: from March 15, 2027 to September 15, 2046, inclusive, with an interest rate of 1.65%; from March 15, 2047 to September 15, 2051 inclusive at a rate of 3.4%. The maximum commitment fee is 0.5% per annum, on the unspent balance of funding. The service fee will be the greater of: (a) 0.75% per annum plus base adjustment for service fees and (b) 0.75% per annum, on the withdrawn loan balance. The Water Supply and Sanitation Security in Moldova project provides for the expansion of access to safely managed water supply and sanitation services in selected rural areas and cities; strengthening institutional capacity at the national and local levels to improve the provision of water supply and sanitation services, etc. Through the project, more than 66,000 people in several parts of the country will have access to improved water supply and sanitation services. The project is planned to be implemented before the beginning of 2027, while part of the funds will be directed to improve sanitary and hygienic conditions in 100 schools and 25 health care facilities in rural areas. The implementation of the project will contribute to the implementation of the Water Supply and Sanitation Strategy for 2014-2030, through which the Moldovan authorities aim to provide 80% of urban and 75% of rural areas with water supply and sanitation infrastructure by 2024.// 01.06.2022 — InfoMarket
