EBRD Finances Road Network Repairs in Chisinau
OREANDA-NEWS. December 05, 2011. The EBRD is continuing to support the modernisation of Moldova’s transport infrastructure with a EUR11.7 million facility to the municipality of Chisinau to co-finance a much-needed upgrade of the road network in the country’s capital, reported the press-centre of EBRD.
As a result of poor maintenance and severe under-investment during the last two decades, the street infrastructure of Chisinau is in a precarious condition. The increased car ownership in the Moldovan capital coupled with a lack of parking regulation has put additional pressure on traffic congestion and safety in the city.
The EBRD financing, pending City Council’s approval, will be used to rehabilitate major streets in the centre of Chisinau, renew asphalt and paving, build new central pedestrian areas, upgrade the water drainage infrastructure and modernise public lighting.
The project also includes the establishment of on-street parking facilities which will be used under a new parking charge scheme. The parking concept is being developed with additional grant financing provided by the EBRD.
The EBRD financing package includes a EUR 10.3 million loan from the Bank’s own account and a EUR 1.4 million tranche funded by the Green Energy Special Fund, administered by the EBRD. In addition, the European Investment Bank is considering a parallel loan of EUR 10.3 million for the project.
“This is an important project for Moldova and its capital. We are delighted to continue to support the Chisinau municipality to modernise the city’s transport infrastructure. This project will improve traffic safety in Chisinau and will create much-needed additional parking facilities. In addition it will lead to greater participation from the private sector through the tendering and management of on-street parking together with the road rehabilitation maintenance works,” said Thomas Mirow, EBRD President.
In 2010, the EBRD provided a EUR 5 million loan to the Chisinau municipality to co-finance the acquisition of 102 new modern trolleybuses that considerably improved public transportation services in the Moldovan capital. The project was co-financed by the EIB and the EU’s Neighbourhood Investment Facility.
Since the beginning of its operations in Moldova, the EBRD has committed almost EUR 600 million in various sectors of the economy, mobilising additional investment in excess of EUR 430 million.