December 22 (SeeNews) - Moldova will receive a fresh 100 million euro ($106 million) loan from the European Investment Bank (EIB) for investment in the reconstruction and modernisation of several roads, the government said.
The new loan is an extension to a 150 million euro credit agreement signed in 2013, the government said in a press release on Wednesday.
Moldova asked the bank to provide additional loan financing of 100 million euro due to the increase in the prices of construction materials, generally caused by the existing regional crisis, in order to complete already started upgrades and finance new works.
The new projects involve the rehabilitation of the R34 road between Hincesti, Leova, Cahul and Giurgiulesti, and of the M3 road between Chisinau, Comrat, Giurgiulesti and the border with Romania.
With this loan increase, EIB plans to finance the rehabilitation of additional 42 km of national roads and the construction of approximately 7 km of national roads in Moldova, it said in a press release earlier this month.
The implementation of the project will contribute to improving the quality of the national road network, including increasing mobility and transport efficiency throughout the country. Also, new jobs will be created and economic development will be supported through investments in road rehabilitation and construction, the government said.
($= 0.9403 euro)