|
Latvia's roads to be upgraded with loan from EBRD
Latvia's roads will be better maintained as a result of a loan from the European Bank for Reconstruction and Development (EBRD), signed today in London by Guy de Selliers, Deputy Vice President of the Bank, and Janis Lusis, Ambassador of Latvia to the United Kingdom.
At the signing ceremony for the US$ 10.4 million (ECU 9.29 million equivalent) loan, Mr de Selliers said: "The EBRD is pleased to provide Latvia with urgently needed funds to reduce its maintenance backlog and arrest the cycle of road deterioration. This project also includes the completion of the Jelgava Bypass, an important section of the Kaliningrad Branch of the Via Baltica. It is our firm belief that efficient land transport is essential for the development of an active private sector in this region, which provides the principal links between Russia and Belarus and the Baltic sea-routes".
Proceeds of the loan will be used to finance: the Latvian Road Administration's repaving programme on the main road network; completion of construction of the Jelgava Bypass; equipment for winter maintenance, traffic surveys and materials testing; and assistance to the Latvian Road Department in reorganising its maintenance activities and implementing the project.
The total cost of the project is estimated at US$ 26.8 million, of which the foreign exchange costs will account for US$ 20.8 million. It is expected that the Export Import Bank of Japan will co-finance US$ 10.4 million. The local costs will be financed by the Latvian Ministry of Transport.
With this project, the Bank has invested over ECU 60 million in Latvia. This project marks the second transport project for the EBRD in Latvia. The first was a loan to rehabilitate Riga International Airport.
|
