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EBRD to finance rehabilitation of Moldovan highway system
A US$ 28.6 million (ECU 21.5 million) loan from the European Bank for Reconstruction and Development (EBRD) will finance a programme of highway rehabilitation along Moldova’s major international routes, assisting transit traffic and facilitating its integration with the rest of Europe. The agreement was signed in London today by Jacques de Larosière, President of the EBRD, and the Republic of Moldova’s Minister of Finance, Mr Valeriu Chitan.
At the signing, Mr de Larosière said: “Moldova’s road system suffers from long-term neglect and this deterioration will accelerate unless remedial action is taken. The EBRD has played a key role in helping Moldova to solve the problem. This project will not only improve the condition of Moldova’s main international corridors, but will also support the Government’s proposed commercialisation and eventual privatisation of construction enterprises, leading in the medium-term to use of competitive tendering for all major road investments”.
The project will be implemented by the Road Department of the Moldovan Ministry of Transport. Because transport accounts for about six per cent of Moldova’s gross domestic product, the efficient operation of this sector is important to economic recovery and growth. The road network is extensive in relation to the country’s size but has deteriorated through lack of resources. The project will attack this deterioration on two fronts: first, priorities for road rehabilitation have been identified and an urgent programme of works has been defined; second, adequate future funding for road maintenance will be assured, based on the principle of cost recovery from road users through the implementation of a fuel surcharge.
Implemented in two phases, the project will finance the rehabilitation on 238km of primary roads (M2 and R14), the design and supervision of civil works, provision of equipment for a pavement management system and for training, and technical cooperation. Phase 1 comprises key sections of the road network to the north of Chisinau, the capital, to the border with Ukraine (M2) and Romania (R14), while Phase 2 will improve roads to the south of Chisinau.
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