This is an update to the PSD disclosed in March 2013.
In 2013, the EBRD provided 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 was 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.
In November 2022, the EBRD provided an additional sovereign loan of up to EUR 100 million to finance the rehabilitation of further road sections, as well as a cost increase under the signed works and supervision contracts in line with the price adjustment mechanism provision.
The Project will support Moldova's economic development and bring operational efficiency from improved regional infrastructure through the rehabilitation of the key road network.
Additional financing will continue to support the Government's efforts to halt the deterioration of the road network in Moldova; ensure key road links are maintained to acceptable standards to facilitate economic growth, regional integration and trade, including the flow of goods via Moldova; secure a stable trade flow to and from Ukraine, and support the reform of the road sector.
The Project will contribute to transition in the following ways:
- Expansion of the private sector by supporting the planned privatisation of state-owned road maintenance companies.
- Continuation of the road maintenance system reform through the development of a strategy for the 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.
- Capacity building and reform agenda focus at the Ministry of Infrastructure and Regional Development.
- Capture the impacts of the integration of the transport network and the resultant increased economic activity.
The loan will be made to the Government of Moldova. The Ministry of Infrastructure and Regional Development ("MoIRD") will implement the Project, through the State Road Administration ("SRA"), the agency responsible for executing road investment, maintenance and safety measures.
EBRD Finance Summary
Sovereign loan of up to EUR 250 million provided in four tranches.
Total Project Cost
The Project also benefits from the European Investment Bank's loan in the amount of EUR 150 million and the European Union's Neighbourhood Investment Facility's grant co-financing of EUR 15 million.
The Project additionality derives from financing structure and policy / regulatory changes linked to Transition Impact objectives. EBRD provides access to financing that is not available in the market from commercial sources on reasonable terms and conditions, with longer tenor and loan size; such financing is necessary to structure the Project. The additionality further comes from the complementarity of the Bank's funding and institutional conditionalities. The Project will support ongoing policy dialogue aimed at improving road sector management and continuation of the road maintenance system reform.
Environmental and Social Summary
In 2013, the Project was categorised as Initial Environmental and Social Examination in accordance with the 2008 EBRD Environmental and Social (E&S) Policy. The Impacts have been specified and addressed through mitigation measures.
In November 2022, with the additional sovereign loan, the Project was categorised B (ESP 2019). It is an existing Client with satisfactory performance and a good track record in implementing the E&S requirements and action plan. The Project was subject to E&S Due Diligence (the "ESDD") and Road Safety Audit (the "RSAu") conducted by independent consultants. Findings from the ESDD and the RSAu suggest that, in general, the Client complies with EBRD's Performance Requirements ("PRs") and potential E&S impacts can be limited and addressed through good international construction practice and additional mitigation measures, which have been developed in the form of the Environmental and Social Action Plan (ESAP). Additional Road Safety Support TC will be provided during the Project preparation and implementation to address, among others, the needs of Ukrainian refugees and significantly increased traffic across the Ukraine-Moldova border.
ESAP recommendations have been approved by the Client.
The Project implementation will be monitored by the Environment and Sustainability Department (ESD) through annual monitoring reports and site visits when necessary.
Technical Cooperation and Grant Financing
The Project benefits from the following pre- and post-signing technical assistance support:
- Environmental and Social Due Diligence;
- Project implementation support, including the development of procurement manuals and implementation support for local contracts procurement;
- Development of the privatisation plan and privatisation support for road maintenance companies;
- The development of a new type of road maintenance contract (with performance criteria);
- Capacity building support for State Road Administration; and
- Road safety support to residents along the Project roads to address road safety risks.
Company Contact Information
mun. Chisinau, str, Bucuriei, 12A MD 2004, Republic of Moldova
PSD last updated
25 Nov 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.