Moldova Roads Rehabilitation IV

Translated version of this PSD: Romanian

Project Description

The EBRD is considering providing a sovereign loan of up to EUR 150 million to the Government of Moldova to finance the rehabilitation of main road sections in Moldova. The purpose of the project is to help reverse the deterioration of the road network in Moldova and to ensure key road links are properly maintained to facilitate economic growth and regional integration.

Transition Impact

The project will contribute to transition in the following ways:

• Expansion of the private sector, by supporting the planned privatisation of the state owned road maintenance companies.
• Continuation of the road maintenance system reform, through development of a strategy for introduction of performance based contracting (PBC), including PBC readiness assessment, development of PBC contract templates as well as capacity building of the state road administration and road maintenance companies.
• Improvements in road safety regulations.

The Client

The loan will be made to the Government of Moldova. The Ministry of Transport and Road Industry (“MTRI”) will implement the Project on behalf of the Government, through the SRA, the agency responsible for executing road investment, maintenance and safety measures.

EBRD Finance

Sovereign loan of up to EUR 150 million to be provided in three tranches.

Project Cost

EUR 315.5 million.

Environmental Impact

The proposed project has been categorised as Initial Environmental and Social Examination in accordance with the 2008 EBRD Environmental and Social (E&S) Policy, as the potential impacts should be specified, however are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is on-going, includes an independent third party environmental and social audit to assess the Client’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client’s ability to carry out the Project in compliance with the Bank’s Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation

Project implementation support (for all three phases), including the development of procurement manuals and implementation support for local contracts procurement. EUR 1.2 million. Financed by EU Neighbourhood Investment Facility

Technical Assistance for

(i) development of the privatisation plan and privatisation support for road maintenance companies;

(ii) the development of new type of road maintenance contracts (with performance criteria);

iii) related capacity building within state road administration in all aspects (including privatisation support, introduction of competition in future, monitoring of performance based contracts and payments); and

(iv) identification of legal changes and proposed changes in the legislation (including secondary legislation and regulations). EUR 0.5 million. Source to be identified

 

Related material