MOLDOVA ROADS IV

Rehabilitation and upgrade of priority Trans-European Transport Network (TEN-T) road sections and implementation of road safety measures on selected road segments.

The project will support the rehabilitation and upgrade of priority TEN-T road sections and implementation of road safety measures on selected road segments of three main roads: M2, M3 and M5. Project components largely form part of the Eastern Partnership (EaP) Investment Plan agreed with the European Commission in 2019. In addition to the financing of capital investment, the Framework Loan will also be catalytic to the deployment of technical assistance (TA) resources for the preparation of a pipeline of investments deriving from the TEN-T and the indicative TEN-T investment action plan.

The project is eligible for the European Investment Bank's ("EIB") financing under its External Lending Mandate, as it contributes to the development of economic infrastructure and, in particular, transport. The project is also in line with the European Union - Moldova Association Agreement, which supports among other things, transport and infrastructure development.

The output of this project will be rehabilitation and reconstruction of five approximately 245 km long sections on the extended Trans-European Transport Network network roads of the Republic of Moldova, including improving of efficiency on the bypass of the capital city - Chisinau. The investment is expected to contribute to better connectivity, improved and safe driving conditions on the main roads and de-congestion of Chisinau street network by providing more efficient bypassing possibilities.

Benefits stemming from the EIB financing include: long tenor of EIB loan, flexible draw-down conditions, grace period allowing to start loan repayments only after the completion of the investment programme as well as attractive pricing, which is important given socio-economic implications of the project. Also, the EIB has contributed to the preparation of the project and the presence of the EIB has raised the technical, environmental and social standards followed for the implementation of the project.

Compliance with EIB Environmental and Social Standards and requirements of the relevant environmental and social legal framework in the Republic of Moldova will be assessed during appraisal of individual scheme allocation.

The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

This operation is covered by the ELM Political Risk Guarantee.

Under EFSD+ Guarantee