EBRD to provide additional financing for rehabilitation of Chișinău–Leușeni road and Chișinău bypass

The European Bank for Reconstruction and Development (EBRD) will grant the Republic of Moldova an additional loan of 150 million euros for the rehabilitation of the Chișinău–Leușeni road and section 2 of the Chișinău city bypass. These two road sections are part of the Trans-European Transport Network (TEN-T) and are of strategic importance for connecting the country to the EU road infrastructure through the Leușeni–Albița border crossing point.

Members of the Parliamentary Committee on Economy, Budget and Finance today approved the report on the legislative initiative that amends the Loan Agreement concluded between Moldova and the EBRD. Following the increase in financing, the total value of the loan granted by the EBRD will reach 300 million euros. The additional funds will also be used to modernize the road asset management system, including through the development of digital tools for monitoring, planning and optimizing road network maintenance works.

According to the authorities, the additional financing is necessary in the context of updating the detailed technical designs so that they comply with European standards. The projects were initially developed on the basis of preliminary studies carried out in 2014 and 2021, without taking into account the impact of the war in Ukraine on the road construction sector. As a result, the prices of construction materials and labor costs have increased by almost 40% over the past four years.

In addition, after the feasibility study was prepared, the volume of works to be carried out also increased. The 150 million euro increase in financing will be implemented without changing the contractual conditions.

The amendment to the Loan Agreement between the Republic of Moldova and the EBRD regarding the implementation of Road Rehabilitation Project V will be submitted for examination in the plenary of Parliament.