The Loan Agreement in the amount of US$16 million was signed in Chisinau on Thursday with the International Development Association (IDA), which is a subdivision of the World Bank. The money will be provided under preferential IDA conditions, free of interest, for a term of 40 years, including a 10 year period of grace.

The loan agreement was signed by Edward Brown, World Bank Director for Moldova, and Mihai Pop, Minister of Finance.

"This is the first World Bank loan provided for the reconstruction of the roads", stated Edward Brown. In the same context, Mihai Pop said that the damaged roads are an obstacle in attracting investments to Moldova, both local and foreign.

Present at the ceremony, Vasile Ursu, Minister of Transport and Road Management, noted that at present 80% of Moldova's roads are damaged. To solve the situation, a strategy was drawn up on road development for a period of 10-15 years, the minister said.

Ursu specified that the loan provided by the World Bank will be used to finish the reconstruction of the Sarateni-Balti road. Construction firms are to be selected with the help of the Bank World within international bids.

According to Ursu, US$11 million of the World Bank loan are to be directly used for the construction works, and US$ 5 million are to be used for design works.

Vasile Ursu did not excluded that these financial means will not suffice for finishing the planned works and a new project might be negotiated with the World Bank.

The total cost of the road rehabilitation project amounts to US$50 million. The project will be co-financed by the European Bank of Reconstruction and Development and the European Investment Bank that will contribute with 12.5 million euro each.

The project implies the rehabilitation of a segment of about 200 km of roads. Also, it is aimed at improving the capacity of the State Road Management for an effective management of the road network, as well as their maintenance and rehabilitation, and at developing investment programs in this field.

The project is to be implemented over four years, by mid 2011, by the State Road Management under the supervision of the Ministry of Transport and Road Management.

The Republic of Moldova has a road network stretching on about 9.5 thousand kilometers, of which 3.3 thousand are national roads and 6.1 thousand km are local roads. More than 90% of the road network of Moldova has an expired term of validity.

The Government announced that in 2007, priority will be given to projects such as Chisinau- Leuseni, Chisinau-Comrat, Orhei-Rezina and Chisinau-Balti roads. At the same time, it is planned to start the construction project of the road Criva-Giurgiulesti, by attracting a strategic investor. // BASA-Press


Publication date: 03 May 2007   

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