October 12 (SeeNews) - The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) agreed to provide a 300 million euro ($354 million) loan to Moldova for road overhaul projects, the ministry of economy and infrastructure said.
The financing will be used to rehabilitate sections of three main national roads, the economy and infrastructure ministry said in a press release on Friday.
The three roads are M2, which links capital Chisinau to Cosauti, M3 connecting Chisinau to Giurgiulesti and M5, which connects Criva to Balti.
The minister of economy and infrastructure Serghei Railean applied for the funding and recently received confirmation from the two lenders about the approval of the loan.
The financing corresponds to the investment objectives of the two European lenders for the Eastern Partnership region, agreed with the European Commission in 2019.
In addition to financing capital investments, the loan will also be a catalyst for the use of technical assistance resources to prepare a line of derivative investments in road infrastructure.
Moldova's State Road Administration (ASD) will be tasked with implementing the project, the ministry said.
The project implementation period is to be negotiated and settled in the final financing agreement.
($= 0.8478 euro)