OREANDA-NEWS. November 02, 2010. This is stipulated by the agreement, signed in Chisinau by Prime Minister of Moldova Vladimir Filat and EBRD Transport Director Sue Barret. According to Sue Barret, this loan is the bank's biggest investment in Moldova that will contribute to its regional development.

The EBRD funds will be provided for 15 years, with a 3 year grace period and under 1% p.a. Besides, the EBRD will give a grant of EUR 1,5 million as technical assistance to support reforms in Moldavian road maintenance, to implement a project on consolidation of institutional capabilities of Moldova State Road Administration, in charge of implementations of roads’ reconstruction project in Moldova. The loan is to be allocated in 3 tranches.

The first tranche of EUR 27 million will be used to reconstruct second segment of the Chisinau-Giurgiulesti highway between the towns of Comrat and Cuimai, with a total length of 55 km. The highway M3 Chisinau-Giurgiulesti is one of the most important roads in Moldova, providing connection between IV and IX European corridors and access to the Danube and the Black Sea. Another 2 tranches, amounting to EUR 25 million and EUR 23 million, respectively, will be used for additional investments in road infrastructure of Moldova.

Sue Barret emphasized that the roads’ reconstruction was one of Moldova’s priorities and the EBRD was glad the opportunity to support implementation of this top priority task for development of economy in the country. The EBRD funds will contribute to significant enhancement of quality of Moldova’s transport network. According to Vladimir Filat, the road's restoration under the EBRD first tranche will start in 2011, when the weather conditions will be favorable.

The purpose of the project is to help in prevention of further worsening of Moldavian roads’ state, in modernization of major road sections to contribute to economic growth and regional integration. The total cost of the project is estimated at EUR 183 million. The European Investment Bank (EIB) and the World Bank (WB) will take part in its co-financing. It is planned that the EIB will also grant a loan of EUR 75 million to implement this project in Moldova.

The total length of Moldavian roads amounts to 16,8 thousand km, including 3,6 thousand km – national roads and the rest – local ones. According to the WB experts, only 10% of Moldavian roads are in satisfactory condition. Near 67% national and 75% local roads are in very bad condition because of allocation of minimal funds for their reconstruction during the last 15 years.

Since 1991 the losses of economic agents because of bad roads in Moldova have amounted to USD 1,8 billion. It should be noted that since the beginning of activity in Moldova the EBRD has invested more than EUR 400 million in various sectors of economy and attracted additional investments to the amount of EUR 320 million.