EBRD supports creation of new urban areas in Moldovan capital

• EBRD lends €68.2 million for urban development in Moldova’s capital Chisinau
• Loan supports creation of new, greener urban areas to mitigate rapid urbanisation
• EU provides first loss risk cover for EBRD loan; €1.9 million investment grant to complement EBRD loan

The European Bank for Reconstruction and Development (EBRD) is lending €68.2 million to provide sustainable infrastructure for new urban areas in the Moldovan capital, Chisinau. The sub-sovereign loan will be complemented by an investment grant of €1.9 million and is supported by the European Union, which provides first loss risk cover.

Chisinau’s 800,000 people are currently living with traffic congestion, uncertain travel times, high energy consumption and air pollution as a result of rapid urbanisation. To address this, authorities in the city, which was one of the first to join the EBRD’s flagship urban sustainability programme EBRD Green Cities, are developing three new urban areas on the periphery of the city which are to be supported by modern amenities.

The project includes improving and constructing three urban road links: Mircea cel Batran Avenue, Mesager Street and Industriala Street. By integrating measures for urban enhancement, the project captures the opportunity to integrate urban development with sustainable mobility and resilient design and support the city towards an inclusive and sustainable urban way of life for its citizens. It will also enhance connectivity for freight movement and provide an alternative route for commuter traffic.

This project aims to provide enough space to accommodate all road users, including pedestrians, the elderly, people with disabilities, cyclists, public transport users, as well as cars and commercial vehicles. By providing infrastructure and facilities for public and shared mobility, it will green the environment by encouraging a shift away from private vehicle use.

As well as boosting industrial and economic development, the project aims to enhance urban biodiversity through nature-inclusive measures, including the establishment of a wetland park in La Izvor Park's Lake 4 area. And it will support the city in developing further actions integrating investments and urban improvements with intelligent transport systems and mobility policies. It will also integrate women’s perspectives into the design and is classified as Gender SMART.

This strategically important project will act as a catalyst to encourage a shift towards non-motorised transport through the adoption of modern and inclusive urban infrastructure.

The project is one of several follow-on investments following on from the Green Cities Action Plan (GCAP) Chisinau drew up as part of joining EBRD Green Cities. The GCAP addresses the city’s priority environmental challenges of climate mitigation and sets targets for sustainable mobility and transport.

The EBRD is a major institutional investor in Moldova. To date it has invested more than €2.75 billion in 185 projects in the country.