EIB Global supports reconstruction of roads with €100 million
The European Investment Bank (EIB), the bank of the European Union, and the Ministry of Finance of Moldova today signed on 15 December 2022 an agreement for a €100 million increase to the original €150 million loan for the rehabilitation and upgrading of key national road sections. These sections are mainly on the extended trans-European transport network (TEN-T) and the Solidarity Lanes going through Moldova, contributing to better integration with the European Union.
With this loan increase, EIB Global plans to finance the rehabilitation of an additional 42 km of national roads and the construction of approximately 7 km of national roads in Moldova. The new operation will finance improvements to the Hîncești–Leova–Cahul–Giurgiulești national road, which leads to Moldova’s only international port of Giurgiulești on the Danube River. The port enjoys a strategic position adjacent to Ukraine and to the European Union with Romania. The other segment involves the construction of a bypass around the town of Cimișlia to shift transit traffic on the TEN-T road away from the town centre.
The EIB loan supports the goals of the EU Economic and Investment Plan for Moldova in the transport sector by spurring regional and national economic growth, facilitating trade, and supporting private sector development. This financing is covered by the Neighbourhood, Development and International Cooperation Instrument — Global Europe (NDICI — Global Europe) comprehensive guarantee.
Minister of Finance of Moldova Dumitru Budianschi said: “By signing this loan with the EIB, we are demonstrating our commitment to the rehabilitation and upgrading of key national road sections, which is becoming increasingly important for the economic development of the country and the wider region. Moldova’s roads are vitally important for transport and for ensuring uninterrupted trade flows from Moldova and Ukraine to Romania, to the Danube River through the Moldovan port of Giurgiulești, and to other EU countries. A well-functioning transport system is critical for economic growth. Upgrading Moldova’s road infrastructure and promoting regional economic links while improving road safety and saving lives is a winning combination. The government appreciates the continued cooperation with the EIB and this timely investment.”
EIB Global and Moldova
The EIB will continue to contribute towards an economically strong, energy-independent and green Moldova. So far, the EIB has done this by investing €280 million and mobilising a further €16 million in grants for projects in the public and private sectors in 2022 alone.
Next year, the EIB’s priority will be investments in the energy and transport sectors, which will help Moldova achieve energy independence and integrate further with the European Union.
