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European Bank approves loan for roads in Bulgaria
The Board of Directors of the European Bank for Reconstruction and Development yesterday approved a US $43 million (ECU 34.7 million equivalent) loan to the Republic of Bulgaria for the construction and rehabilitation of roads.
Mario Sarcinelli, Vice President in charge of Development Banking, said: "This project will improve transit traffic flows throughout Southeastern Europe and help integrate the Bulgarian economy into international markets. The Bank's role in the highway sector is particularly important at this time because of the severe shortage of funds."
Specifically, the loan will assist the Government of Bulgaria in completing construction of a 32 km section of the Trans-European Motorway between Plovdiv and Orizovo, as well as the rehabilitation of some 800 km of primary roads serving regional and long distance transit traffic. Project preparation included an environmental assessment which focussed on a plan to mitigate adverse environmental effects, to be implemented as part of the motorway construction programme.
The project will also support the establishment of a toll road operation for long distance traffic on the existing motorway network which is considered as an initial step in promoting possible longer term private sector participation in the motorway programme. The project forms part of a wider programme of assistance, which includes preparation of studies on other modes of transportation, including railway restructuring, and further development of the Trans-European Motorway.
The total cost of the project is estimated at US $105.4 million equivalent: US $43 million from the European Bank, and US $38.4 million equivalent from the Government of Bulgaria. A loan from the European Investment Bank is also under consideration.
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