The European Bank for Reconstruction and Development (EBRD) has approved a â‚¬150m loan to the Moldovan government for the rehabilitation of nearly 200km of motorways across the country.
The finance marks the EBRD’s largest ever investment in Moldova and is intended to improve economic growth and regional integration.
Moldovan Prime Minister Lurie Leanca said that a high-quality transport system is one of the key priorities of the government.
“We expect around 1,000 jobs to be created by this investment and it will reduce business costs and increase productivity, creating economic growth and prosperity for all,” Leanca said.
The new loan will be used for the rehabilitation of a section of the R33 Hincesti-Lapusna-M1 road to the Romanian border; and the R14 Balti-Sarateni road section, a part of the transport connection between the cities of Chitinau and Balti.
Among other roads to be renovated using the financing are the R9 Soroca-Arionesti route in the north and the R34 HÃ®ncesti-Leova-Cantemir road in the south of the country.
The financing will also be used for the construction of the 17km M3 Slobozia Mare bypass on the M3 Chisinau-Giurgiulesti road which links Chisinau to the country’s only port.
The loan will be paid in three tranches. This year the country will get â‚¬63m, while â‚¬40m and â‚¬47m will follow in 2014 and 2015 respectively, subject to the successful execution of the project.
The European Investment Bank will provide a loan matching the EBRD’s financing. Moldova has also requested a grant of approximately â‚¬15m from the EU’s Neighbourhood Investment Fund to renovate additional road links.
The EBRD has invested â‚¬213m to date in Moldova’s infrastructure, including roads, the development of Chisinau International Airport and the expansion of Giurgiulesti port.