The EBRD is considering providing a sovereign loan to the Government of Moldova to co-finance the rehabilitation of main road sections in Moldova. The purpose of the project is to help reverse the deterioration of the road network in Moldova and to ensure key road links are properly maintained to facilitate economic growth and regional integration
Applicant/promoter/sponsor
The loan will be made to the Government of Moldova. The Ministry of Transport and Road Industry ("MTRI") will implement the Project on behalf of the Government, through the SRA, the agency responsible for executing road investment, maintenance and safety measures.
Investment amount
The project cost is EUR 166.2 million. EBRD sovereign loan of up to EUR 75 million, to be provided in three tranches.
Status
Two-stage environmental and social appraisal is being carried out for the overall investment project.
Expected impacts on transport, environment, social, other
The project will contribute to transition in the following ways:
Enhancement of procurement standards and supervisory procedures through the preparation and implementation of new procurement policies and rules for the State Road Administration ("SRA").
Reform of the routine maintenance system for roads.
Enhancement of road sector financing and the Road Fund's institutional capacity.
Expansion of the private sector, through award of all periodic maintenance contracts based on competitive bidding.
Environmental impact: For the first stage, a corridor-level EIA and SIA was carried out as part of the M3 Road Feasibility Study. Second stage involves a more detailed assessment of each Phase once the sections are selected. For Phase 1 the review of the corridor level EIA and SIA identified a number of gaps, related to borrow areas and quarry sites; assessment of the potential impacts of the proposed flood bund in Chirsova; details of drainage and its impacts on watercourses; mapping for protected areas; and cumulative impacts. These gaps were addressed during the EBRD due diligence and necessary mitigation measures were included in the Environmental and Social Action Plan (ESAP). The overall conclusion of the due diligence is that the potential impacts of the Phase 1 can be addressed through the implementation of the mitigation measures that are identified.
Source of Funding
EBRD. The Project will be co-financed by the European Investment Bank and a concessionary co-financier yet to be identified.
Blog » 2010 - Moldova, Roads rehabilitation III
2010 - Moldova, Roads rehabilitation III
The project will contribute to transition in the following ways:
Environmental impact: For the first stage, a corridor-level EIA and SIA was carried out as part of the M3 Road Feasibility Study. Second stage involves a more detailed assessment of each Phase once the sections are selected. For Phase 1 the review of the corridor level EIA and SIA identified a number of gaps, related to borrow areas and quarry sites; assessment of the potential impacts of the proposed flood bund in Chirsova; details of drainage and its impacts on watercourses; mapping for protected areas; and cumulative impacts. These gaps were addressed during the EBRD due diligence and necessary mitigation measures were included in the Environmental and Social Action Plan (ESAP). The overall conclusion of the due diligence is that the potential impacts of the Phase 1 can be addressed through the implementation of the mitigation measures that are identified.
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