OREANDA-NEWS. June 28, 2007. EBRD, EIB and World Bank to finance road rehabilitation, reported the press-centre of EBRD.

For a landlocked country whose economy is largely based on agriculture a good road infrastructure is of the utmost importance. This is especially true for Moldova, which is also becoming increasingly important as a border state between the European and the countries further to the east. The Trans-European Network Corridor IX (Moscow-Kiev-Bucharest) crosses the country from east to west.

Moldova’s road network, however, is in urgent need of rehabilitation. Therefore the EBRD – together with the World Bank and the European Investment Bank (EIB) – is providing the country with a financing package which will bring major improvements. The project will have two phases with a total cost of ?89,5 million, of which the EBRD will provide a total of ?30 million.

The works will involve the rehabilitation of road sections along the main north-south corridor and the east-west corridor linking the capital Chisinau with the border to Romania. Moldova’s road network totals about 16,000 kilometres, but presently 58 per cent of national roads and 75 per cent of local roads are classified as in poor condition.

In recognition of the importance of a good road and transport infrastructure the Government of Moldova is preparing a comprehensive strategy and has increased spending on road maintenance and rehabilitation. The road rehabilitation project financed by the EBRD, World Bank and EIB is part of these endeavours.

Alexander Auboeck, EBRD Business Group Director for Infrastructure, said the significance of the project goes beyond the physical road works. In addition, it will also introduce a reform of road sector financing and institutional strengthening to improve the state road administration’s capacity to manage the road network and execute works in a transparent and efficient manner.

To-date, the EBRD has signed around 30 projects in Moldova, investing more than ?200 million and mobilising another ?125 million from its partners. The country is part of the EBRD’s Early Transition Countries Initiative, launched in 2004, which aims to stimulate market activity in the Bank’s lowest-income countries of operations by using a streamlined approach to financing more and smaller projects, mobilising more investment, and encouraging economic reform.